32.111 Contract clauses for non-commercial

purchases.

(a) The contracting officer shall insert the following clauses, appropriately modified with respect to

payment due dates, in accordance with agency regulations-

(1) The clause at 52.232-1, Payments, in solicitations and contracts when a fixed-price supply

contract, a fixed-price service contract, or a contract for nonregulated communication services is

contemplated;

(2) The clause at 52.232-2, Payment under Fixed-Price Research and Development Contracts, in

solicitations and contracts when a fixed-price research and development contract is contemplated;

(3) The clause at 52.232-3, Payments under Personal Services Contracts, in solicitations and

contracts for personal services;

(4) The clause at 52.232-4, Payments under Transportation Contracts and Transportation-Related

Services Contracts, in solicitations and contracts for transportation or transportation-related

services;

(5) The clause at 52.232-5, Payments under Fixed-Price Construction Contracts, in solicitations and

contracts for construction when a fixed-price contract is contemplated;

(6) The clause at 52.232-6, Payments under Communication Service Contracts with Common

Carriers, in solicitations and contracts for regulated communication services by common carriers;

and

(7) The clause at 52.232-7, Payments under Time-and-Materials and Labor-Hour Contracts, in

solicitations and contracts when a time-and-materials or labor-hour contract is contemplated. If the

contracting officer determines that it is necessary to withhold payment to protect the Government’s

interests, paragraph (a)(7) of the clause permits the contracting officer to unilaterally issue a

modification requiring the contractor to withhold 5 percent of amounts due, up to a maximum of

$50,000 under the contract. The contracting officer shall ensure that the modification specifies the

percentage and total amount of the withhold payment. Normally, there should be no need to

withhold payment for a contractor with a record of timely submittal of the release discharging the

Government from all liabilities, obligations, and claims, as required by paragraph (g) of the clause.

(b) The contracting officer shall insert the following clauses, appropriately modified with respect to

payment due dates in accordance with agency regulations:

(1) The clause at 52.232-8, Discounts for Prompt Payment, in solicitations and contracts when a

fixed-price supply contract or fixed-price service contract is contemplated.

(2) A clause, substantially the same as the clause at 52.232-9, Limitation on Withholding of

Payments, in solicitations and contracts when a supply contract, research and development contract,

service contract, time-and-materials contract, or labor-hour contract is contemplated that includes

two or more terms authorizing the temporary withholding of amounts otherwise payable to the

contractor for supplies delivered or services performed.

(c) The contracting officer shall insert the following clauses, appropriately modified with respect to
payments due dates in accordance with agency regulations:

(1) The clause at 52.232-10, Payments under Fixed-Price Architect-Engineer Contracts, in fixed-price

architect-engineer contracts.

(2) The clause at 52.232-11, Extras, in solicitations and contracts when a fixed-price supply contract,

fixed-price service contract, or a transportation contract is contemplated.

Parent topic: Subpart 32.1 - Financing for Other Than a Commercial Purchase