[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: 48CFR32.112-1]



[Page 653]

 

            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. 32.112-1  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, 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--

    (i) Progress payments to the subcontractor or supplier in compliance 

with Chapter 39 of Title 31, United States Code (Prompt Payment Act); or

    (ii) Final payment to the subcontractor or supplier in compliance 

with the terms of the subcontract, purchase order, or other agreement 

with the prime contractor;

    (2) For a contract other than construction, whether the contractor 

has made progress payments, final payments, or other payments to the 

subcontractor or supplier in compliance with the terms of the 

subcontract, purchase order, or other agreement with the prime 

contractor; or

    (3) For any contract, whether the contractor's certification of 

payment of a subcontractor or supplier accompanying its payment request 

to the Government is accurate.

    (b) If, in making the determination in paragraphs (a)(1) and (2) of 

this section, the contracting officer finds the prime contractor is not 

in compliance, the contracting officer may--

    (1) Encourage the contractor to make timely payment to the 

subcontractor or supplier; or

    (2) If authorized by the applicable payment clauses, reduce or 

suspend progress payments to the contractor.

    (c) If the contracting officer determines that a certification 

referred to in paragraph (a)(3) of this section is inaccurate in any 

material respect, the contracting officer shall initiate administrative 

or other remedial action.



[60 FR 48274, Sept. 18, 1995]