Source: https://acquisition.gov/far/html/Subpart%2032_1.html
Timestamp: 2018-08-21 03:01:50
Document Index: 249488363

Matched Legal Cases: ['art 32', 'art.\n32', 'art 32', 'art 15', 'art 32', 'art 32', 'art 15', 'art 32', 'art 32']

32.000 Scope of part.
This part prescribes policies and procedures for contract financing and other payment matters. This part addresses—
(1) Contract financing payments include—
(2) Contract financing payments do not include—
“Designated billing office” means the office or person (governmental or nongovernmental) designated in the contract where the contractor first submits invoices and contract financing requests. The contract might designate different offices to receive invoices and contract financing requests. The designated billing office might be—
(1) Invoice payments include—
(iv) Interim payments under a cost-reimbursement contract for services when Alternate I of the clause at 52.232-5, Prompt Payment, is used.
32.002 Applicability of subparts.
32.003 Simplified acquisition procedures financing.
32.004 Contract performance in foreign countries.
(a) Requirement. When a contract financing clause is included at the inception of a contract, there shall be no separate consideration for the contract financing clause. The value of the contract financing to the contractor is expected to be reflected in either (1) a bid or negotiated price that will be lower than such price would have been in the absence of the contract financing, or (2) contract terms and conditions, other than price, that are more beneficial to the Government than they would have been in the absence of the contract financing. Adequate new consideration is required for changes to, or the addition of, contract financing after award.
32.006-2 Definition.
(d) In determining whether to reduce or suspend further payment(s), as a minimum, the agency head shall consider—
(e) Before making a decision to reduce or suspend further payments, the agency head shall, in accordance with agency procedures—
(1) Notify the contractor in writing of the action pro-posed by the remedy coordination official and the reasons therefor (such notice must be sufficiently specific to permit the contractor to collect and present evidence addressing the aforesaid reasons); and
(g) The agency shall retain in its files the written justification for each—
(h) Not later than 180 calendar days after the date of the reduction or suspension action, the remedy coordination official shall—
(b) In accordance with 41 U.S.C. 4506(h) and 10 U.S.C. 2307(i)(7), each report shall contain—
32.009 Providing accelerated payments to small business subcontractors.
32.009-1 General.
Pursuant to the policy provided by OMB Memorandum M-12-16, Providing Prompt Payment to Small Business Subcontractors (and as extended by OMB Memorandum M-13-15 and M-14-10, both titled, Extension of Policy to Provide Accelerated Payment to Small Business Subcontractors), agencies shall take measures to ensure that prime contractors pay small business subcontractors on an accelerated timetable to the maximum extent practicable, and upon receipt of accelerated payments from the Government. This acceleration does not provide any new rights under the Prompt Payment Act and does not affect the application of the Prompt Payment Act late payment interest provisions.
32.009-2 Contract clause.
Subpart 32.1—Non-Commercial Item Purchase Financing
32.100 Scope of subpart.
32.101 Authority.
32.102 Description of contract financing methods.
(b) Progress payments based on costs are made on the basis of costs incurred by the contractor as work progresses under the contract. This form of contract financing does not include—
(e)(1) Progress payments based on a percentage or stage of completion are authorized by the statutes cited in 32.101.
(f) Performance-based payments are contract financing payments made on the basis of—
32.103 Progress payments under construction contracts.
32.105 Uses of contract financing.
(a) Contract financing methods covered in this part are intended to be self-liquidating through contract performance. Consequently, agencies shall only use the methods for financing of contractor working capital, not for the expansion of contractor-owned facilities or the acquisition of fixed assets. However, under loan guarantees, exceptions may be made for—
32.106 Order of preference.
(a) Private financing without Government guarantee. It is not intended, however, that the contracting officer require the contractor to obtain private financing—
(1) At unreasonable terms; or
32.107 Need for contract financing not a deterrent.
32.108 Financial consultation.
Each contracting office should have available and use the services of contract financing personnel competent to evaluate credit and financial problems. In resolving any questions concerning—
32.109 Termination financing.
32.110 Payment of subcontractors under cost-reimbursement prime contracts.
(a) The payments are made under the criteria in Subpart 32.5 for customary progress payments based on costs, 32.202-1 for commercial item purchase financing, or 32.1003 for performance-based payments, as applicable.
(a) The contracting officer shall insert the following clauses, appropriately modified with respect to payment due dates, in accordance with agency regulations—
32.112 Nonpayment of subcontractors under contracts for noncommercial items.
32.112-1 Subcontractor assertions of nonpayment.
(a) In accordance with Section 806(a)(4) of Pub. L. 102-190, as amended by Sections 2091 and 8105 of Pub. L. 103-355 (10 U.S.C. 2302 note), upon the assertion by a subcontractor or supplier of a Federal contractor that the subcontractor or supplier has not been paid in accordance with the payment terms of the subcontract, purchase order, or other agreement with the prime contractor, the contracting officer may determine—
(1) For a construction contract, whether the contractor has made—
(b) If, in making the determination in paragraphs (a)(1) and (2) of this subsection, the contracting officer finds the prime contractor is not in compliance, the contracting officer may—
32.112-2 Subcontractor requests for information.
(a) In accordance with Section 806(a)(1) of Pub. L. 102-190, as amended by Sections 2091 and 8105 of Pub. L. 103-355 (10 U.S.C. 2302 note), upon the request of a subcontractor or supplier under a Federal contract for a non-commercial item, the contracting officer shall promptly advise the subcontractor or supplier as to—
(b) In accordance with 5 U.S.C. 552(b)(1), this subsection does not apply to matters that are—
(d) Financing of contracts for supplies or services awarded under the competitive negotiation method of procurement in accordance with Part 15, through either progress payments based on costs in accordance with Subpart 32.5, or performance-based payments in accordance with Subpart 32.10 (but not both).
(e) Financing of contracts for supplies or services awarded under a sole-source acquisition as defined in 2.101 and using the procedures of Part 15, through either progress payments based on costs in accordance with Subpart 32.5, or performance-based payments in accordance with Subpart 32.10 (but not both).
Any contract financing arrangement that deviates from this part is unusual contract financing. Unusual contract financing shall be authorized only after approval by the head of the agency or as provided for in agency regulations.