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FAR and DFARS › DFARS Part 232: Contract Financing

DFARS 232.072-1 Required financial reviews.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section requires the contracting officer to perform a financial review when they lack sufficient information to determine a contractor's financial responsibility. It also lists specific situations where a financial review should be considered before award or periodically after award. Contractors should be aware that these reviews can affect contract award and ongoing performance.

Applies to: Contracting officers and contractors

What it requires

  • The contracting officer shall perform a financial review when they do not otherwise have sufficient information to make a positive determination of financial responsibility.

Key terms: financial review · financial responsibility · preaward clearance · Consolidated List of Contractors Indebted to the Government (Hold-Up List) · contract financing payments

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

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—

(a) Prior to award of a contract, when—

(1) The contractor is on a list requiring preaward clearance or other special clearance before award;

(2) The contractor is listed on the Consolidated List of Contractors Indebted to the Government (Hold-Up List), or is otherwise known to be indebted to the Government;

(3) The contractor may receive Government assets such as contract financing payments or Government property;

(4) The contractor is experiencing performance difficulties on other work; or

(5) The contractor is a new company or a new supplier of the item.

(b) At periodic intervals after award of a contract, when—

(1) Any of the conditions in paragraphs (a)(2) through (a)(5) of this subsection are applicable; or

(2) There is any other reason to question the contractor's ability to finance performance and completion of the contract.

Sections that refer to it

← 232.072 Financial responsibility of contractors. · 232.072-2 Appropriate information. →

Rule changes for DFARS Part 232

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 232.072-1 Required financial reviews · SpendQuery