[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR32.110]

[Page 627-628]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 32_CONTRACT FINANCING--Table of Contents
 
           Subpart 32.1_Non-Commercial Item Purchase Financing
 
Sec.  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,

[[Page 628]]

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 item 
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.

[65 FR 16279, Mar. 27, 2000]