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                            32.110 Payment of subcontractors under cost-reimbursement prime contracts.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart32.032.132.232.332.432.532.632.732.832.932.1032.11
Section32.10032.10132.10232.10332.10432.10532.10632.10732.10832.10932.11032.11132.11232.11332.114
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32.110 Payment of subcontractors under cost-reimbursement prime contracts.32.110 Payment of subcontractors under cost-reimbursement prime contracts.       If the contractor makes financing payments to a subcontractor under a cost-reimbursement prime contract, the contracting officer should accept the financing payments as reimbursable costs of the prime contract only under the following conditions:                                       (a) The payments are made under the criteria in  subpart  32.5 for customary progress payments based on costs,  32.202-1 for commercial product or commercial service purchase financing, or  32.1003 for performance-based payments, as applicable.                                          (b) If customary progress payments are made, the payments do not exceed the progress payment rate in  32.501-1, unless unusual progress payments to the subcontractor have been approved in accordance with  32.501-2.                                          (c) If customary progress payments are made, the subcontractor complies with the liquidation principles of  32.503-8,  32.503-9, and  32.503-10.                                          (d) If performance-based payments are made, the subcontractor complies with the liquidation principles of  32.1004(d).                                          (e) The subcontract contains financing payments terms as prescribed in this part.    **Parent topic:**  Subpart 32.1 - Financing for Other Than a Commercial Purchase
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