52.232-30 Installment Payments for

Commercial Products and Commercial

Services.

As prescribed in 32.206(g), insert the following clause:

Installment Payments for Commercial Products and Commercial Services (Nov 2021)

(a) Contractor entitlement to financing payments. The Contractor may request, and the Government

shall pay, a contract financing installment payment as specified in this contract when: the payment

requested is properly due in accordance with this contract; the supplies deliverable or services due

under the contract will be delivered or performed in accordance with the contract; and there has

been no impairment or diminution of the Government’s security under this contract.

(b) Computation of amounts. Installment payment financing shall be paid to the Contractor when

requested for each separately priced unit of supply (but not for services) of each line item in

amounts approved by the Contracting Officer pursuant to this clause.

(1) Number of installment payments for each line item. Each separately priced unit of each line item

is authorized a fixed number of monthly installment payments. The number of installment payments

authorized for each unit of a line item is equal to the number of months from the date of contract

award to the date onemonth before the first delivery of the first separately priced unit of the line

item. For example, if the first scheduled delivery of any separately priced unit of a line item is 9

months after award of the contract, all separately priced units of that line item are authorized 8

installment payments.

(2) Amount of each installment payment. The amount of each installment payment for each

separately priced unit of each line item is equal to 70 percent of the unit price divided by the

number of installment payments authorized for that unit.

(3) Date of each installment payment. Installment payments for any particular separately priced unit

of a line item begin the number of months prior to the delivery of that unit that are equal to the

number of installment payments authorized for that unit. For example, if 8 installment payments are

authorized for each separately priced unit of a line item, the first installment payment for any

particular unit of that line item would be 8 months before the scheduled delivery date for that unit.

The last installment payment would be 1 month before scheduled delivery of a unit.

(4) Limitation on payment. Prior to the delivery payment for a separately priced unit of a line item,

the sum of all installment payments for that unit shall not exceed 70 percent of the price of that unit.

(c) Contractor request for installment payment. The Contractor may submit requests for payment of

installment payments not more frequently than monthly, in a form and manner acceptable to the

Contracting Officer. Unless otherwise authorized by the Contracting Officer, all installment

payments in any month for which payment is being requested shall be included in a single request,

appropriately itemized and totaled.

(d) Dates for payment. An installment payment under this clause is a contract financing payment

under the Prompt Payment clause of this contract, and except as provided in paragraph (e) of this
clause, approved requests shall be paid within 30 days of submittal of a proper request for payment.

(e) Liquidation of installment payments. Installment payments shall be liquidated by deducting from

the delivery payment of each item the total unliquidated amount of installment payments made for

that separately priced unit of that line item. The liquidation amounts for each unit of each line item

shall be clearly delineated in each request for delivery payment submitted by the Contractor.

(f) Security for installment payment financing. In the event the Contractor fails to provide adequate

security as required in this contract, no financing payment shall be made under this contract. Upon

receipt of adequate security, financing payments shall be made, including all previous payments to

which the Contractor is entitled, in accordance with the terms of the contract. If at any time the

Contracting Officer determines that the security provided by the Contractor is insufficient, the

Contractor shall promptly provide such additional security as the Contracting Officer determines

necessary. In the event the Contractor fails to provide such additional security, the Contracting

Officer may collect or liquidate such security that has been provided, and suspend further payments

to the Contractor; the Contractor shall repay to the Government the amount of unliquidated

financing payments as the Contracting Officer at his sole discretion deems repayable.

(g) Special terms regarding termination for cause. If this contract is terminated for cause, the

Contractor shall, on demand, repay to the Government the amount of unliquidated installment

payments. The Government shall be liable for no payment except as provided by the Termination for

Cause paragraph of the clause at Federal Acquisition Regulation 52.212-4, Contract Terms and

Conditions—Commercial Products and Commercial Services.

(h) Reservation of rights.

(1) No payment, vesting of title under this clause, or other action taken by the Government under

this clause shall-

(i) Excuse the Contractor from performance of obligations under this contract; or

(ii) Constitute a waiver of any of the rights or remedies of the parties under the contract.

(2) The Government’s rights and remedies under this clause-

(i) Shall not be exclusive, but rather shall be in addition to any other rights and remedies provided

by law or this contract; and

(ii) Shall not be affected by delayed, partial, or omitted exercise of any right, remedy, power, or

privilege, nor shall such exercise or any single exercise preclude or impair any further exercise

under this clause or the exercise of any other right, power, or privilege of the Government.

(i) Content of Contractor's request for installment payment. The Contractor’s request for installment

payment shall contain the following:

(1) The name and address of the Contractor;

(2) The date of the request for installment payment;

(3) The contract number and/or other identifier of the contract or order under which the request is

made; and
(4) An itemized and totaled statement of the items, installment payment amount, and month for

which payment is being requested, for each separately priced unit of each line item.

(End of clause)

Parent topic: 52.232 [Reserved]