52.232-29 Terms for Financing of Purchases

of Commercial Products and Commercial

Services.

As prescribed in 32.206(b)(2), insert the following clause:

Terms for Financing of Purchases of 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 payment as specified elsewhere 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) 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 contract

financing 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 (FAR) 52.212-4,

Contract Terms and Conditions—Commercial Products and Commercial Services.

(c) Security for Government 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 provisions for contract financing. 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; and the Contractor shall repay to the Government the amount of unliquidated

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

(d) Reservation of rights.

(1) No payment or other action 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.
(e) Content of Contractor's request for financing payment. The Contractor’s request for financing

payment shall contain the following:

(1) The name and address of the Contractor;

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

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

made; and

(4) An appropriately itemized and totaled statement of the financing payments requested and such

other information as is necessary for computation of the payment, prepared in accordance with the

direction of the Contracting Officer.

(f) Limitation on frequency of financing payments. Contractor financing payments shall be provided

no more frequently than monthly.

(g) Dates for payment. A payment under this clause is a contract financing payment and not subject

to the interest penalty provisions of the Prompt Payment Act. The designated payment office will pay

approved payment requests within 30 days of submittal of a proper request for payment.

(h) Conflict between terms of offeror and clause. In the event of any conflict between the terms

proposed by the offeror in response to an invitation to propose financing terms (FAR 52.232-31) and

the terms in this clause, the terms of this clause shall govern.

(End of clause)

Parent topic: 52.232 [Reserved]