[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR32.110]



[Page 651-652]

 

            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, 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).



[[Page 652]]



    (e) The subcontract contains financing payments terms as prescribed 

in this part.



[65 FR 16279, Mar. 27, 2000]