DFARS Part 32

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TABLE OF CONTENTS

SUBPART 232.1--GENERAL
232.102 Description of contract financing methods.
232.102-70 Provisional delivery payments.
232.108 Financial consultation.
232.111 Contract clauses.
232.111-70 Additional clause.
232.170 Responsibilities.
232.171 Contract Finance Committee.
232.172 Financial responsibility of contractors.
232.172-1 Required financial reviews.
232.172-2 Appropriate information.
232.172-3 Cash flow forecasts.
232.173 Reduction or suspension of contract payments upon finding of fraud.
232.173-1 General.
232.173-2 Definitions.
232.173-3 Responsibilities.
232.173-4 Procedures.
232.173-5 Reporting.

SUBPART 232.3--LOAN GUARANTEES FOR DEFENSE PRODUCTION
232.302 Authority.

SUBPART 232.4--ADVANCE PAYMENTS
232.404 Exclusions.
232.409 Contracting officer action.
232.409-1 Recommendation for approval.
232.410 Findings, determination, and authorization.
232.412 Contract clause.
232.412-70 Additional clauses.
232.470 Advance payment pool.

SUBPART 232.5--PROGRESS PAYMENTS BASED ON COSTS
232.501 General.
232.501-1 Customary progress payment rates.
232.501-2 Unusual progress payments.
232.501-3 Contract price.
232.502 Preaward matters.
232.502-1 Use of customary progress payments.
232.502-1-70 Customary foreign military sale progress payments.
232.502-1-71 Customary flexible progress payments.
232.502-4 Contract clauses.
232.502-4-70 Additional clauses.
232.503 Postaward matters.
232.503-6 Suspension or reduction of payments.
232.503-15 Application of Government title terms.

DAC 91-2

TABLE OF CONTENTS (Continued)

SUBPART 232.6--CONTRACT DEBTS
232.605 Responsibilities and cooperation among Government officials.
232.606 Debt determination and collection.
232.610 Demand for payment of contract debt.
232.616 Compromise actions.
232.617 Contract clause.
232.670 Transfer of responsibility for debt collection.
232.671 Bankruptcy reporting.

SUBPART 232.7--CONTRACT FUNDING
232.702 Policy.
232.703 Contract funding requirements.
232.703-1 General.
232.703-70 Military construction appropriations act restriction.
232.704 Limitation of cost or funds.
232.704-70 Incrementally funded fixed-price contracts.
232.705 Contract clause.
232.705-70 Clause for limitation of Government's obligation.

SUBPART 232.8--ASSIGNMENT OF CLAIMS
232.803 Policies.
232.805 Procedure.
232.806 Contract clause.

SUBPART 232.9--PROMPT PAYMENT
232.903 Policy.
232.905 Invoice payments.
232.906 Contract financing payments.
232.970 Payment of subcontractors.
232.970-1 Subcontractor assertions of nonpayment.
232.970-2 Subcontractor requests for information.

PART 232 CONTRACT FINANCING

SUBPART 232.1--GENERAL

232.102 Description of contract financing methods.

232.102-70 Provisional delivery payments.

232.108 Financial consultation.

232.111 Contract clauses.

232.111-70 Additional clause.
Use the clause at 252.232-7006, Reduction or Suspension of Contract Payments Upon Finding of Fraud, in all solicitations and contracts.

232.170 Responsibilities.

232.171 Contract Finance Committee.

232.172 Financial responsibility of contractors.
Use the policies and procedures in this section in determining the financial capability of current or prospective contractors.

232.172-1 Required financial reviews.
The contracting officer shall perform a financial review when the contracting officer does not otherwise have sufficient information to make a positive determination of financial responsibility. In addition, the contracting officer shall consider performing a financial review--

232.172-2 Appropriate information.

232.172-3 Cash flow forecasts.

232.173 Reduction or suspension of contract payments upon finding of fraud.

232.173-1 General.

232.173-2 Definitions.
As used in this section--

232.173-3 Responsibilities.

232.173-4 Procedures.

232.173-5 Reporting.
Departments and agencies, in accordance with department/agency procedures, shall prepare and submit to the Under Secretary of Defense (Acquisition & Technology), through the Director of Defense Procurement, annual reports (Report control symbol DD-ACQ(A) 1891) containing--

SUBPART 232.3--LOAN GUARANTEES FOR DEFENSE PRODUCTION

232.302 Authority.

SUBPART 232.4--ADVANCE PAYMENTS

232.404 Exclusions.

232.409 Contracting officer action.

232.409-1 Recommendation for approval.
To ensure uniform application of this subpart (see FAR 32.402(e)(1)), the departmental/agency contract financing office shall prepare the documents required by FAR 32.409-1(e) and (f).

232.410 Findings, determination, and authorization.

"(4) The proposed advance payment clause contains appropriate provisions as security for advance payments. These provisions include a requirement that the outstanding advance payments will be liquidated from cost reimbursements as they become due the contractor. This security is considered adequate to protect the interest of the Government."

232.412 Contract clause.

232.412-70 Additional clauses.

232.470 Advance payment pool.

SUBPART 232.5--PROGRESS PAYMENTS BASED ON COST

232.501 General.
In DoD, customary progress payments may be either uniform or flexible (FAR 32.501-1(a)). See also 232.501-1 and 232.502-1-71.

232.501-1 Customary progress payment rates.

232.501-2 Unusual progress payments.

232.501-3 Contract price.

232.502 Preaward matters.

232.502-1 Use of customary progress payments.

232.502-1-70 Customary foreign military sale progress payments.

232.502-1-71 Customary flexible progress payments.


TABLE 32-1, CUSTOMARY UNIFORM PROGRESS PAYMENT RATES

Uniform Rate Investment Cash Flow

* Flexible progress payments shall not be used for contracts awarded as a result of solicitations issued on or after November 11, 1993.
**See paragraph (b)(5)(ii) for implementation instructions.

Defense Federal Acquisition Regulation supplement
Part 232--Contract Financing

232.502-4 Contract clauses.

232.502-4-70 Additional clauses.

232.503 Postaward matters.

232.503-6 Suspension or reduction of payments.

232.503-15 Application of Government title terms.

Defense federal Acquisition Regulation Supplement
Part 232--Contract Financing

SUBPART 232.6--CONTRACT DEBTS

232.605 Responsibilities and cooperation among Government officials.

232.606 Debt determination and collection.

232.610 Demand for payment of contract debt.

232.616 Compromise actions.
Only the department/agency contract financing offices (232.108(1)) are authorized to compromise debts covered by this subpart.

232.617 Contract clause.

232.670 Transfer of responsibility for debt collection.
Disbursing officers will transfer responsibility for debt collection to departmental/agency contract financing offices in accordance with comptroller regulations. Notwithstanding the transfer of the debt collection responsibility, contracting officers shall continue to provide assistance as requested by the debt collection office.

232.671 Bankruptcy reporting.

SUBPART 232.7--CONTRACT FUNDING

232.702 Policy.
Fixed-price contracts shall be fully funded except as permitted by 232.703-1.

232.703 Contract funding requirements.

232.703-1 General.

232.703-70 Military construction appropriations act restriction.
Annual military construction appropriations acts restrict the use of funds appropriated by the acts for payments under cost-plus-fixed-fee contracts (see 216.306(c)).

232.704 Limitation of cost or funds.

232.704-70 Incrementally funded fixed-price contracts.

232.705 Contract clauses.

232.705-70 Clause for limitation of Government's obligation.
Use the clause at 252.232-7007, Limitation of Government's Obligation, in solicitations and resultant incrementally funded fixed-price contracts. The contracting officer may revise the contractor's notification period, in paragraph (c) of the clause, from "ninety" to "thirty" or "sixty" days, as appropriate.

SUBPART 232.8--ASSIGNMENT OF CLAIMS

232.803 Policies.

232.805 Procedure.

232.806 Contract clause.

SUBPART 232.9--PROMPT PAYMENT

232.903 Policy.
DoD policy is to assist small disadvantaged business concerns by paying them as quickly as possible after invoices are received and before normal payment due dates established in the contract (see 232.905(2)).

232.905 Invoice payments.

232.906 Contract financing payments.

232.970 Payment of subcontractors.

232.970-1 Subcontractor assertions of nonpayment.

232.970-2 Subcontractor requests for information.

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