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FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.10

DFARS 232.1003-70 Criteria for use.

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 DFARS section states that a contractor's financial statements must comply with Generally Accepted Accounting Principles to receive performance-based payments. It also clarifies that the Defense Contract Audit Agency is not given authority to audit that GAAP compliance.

Applies to: Contractors receiving performance-based payments

What it requires

  • Ensure financial statements comply with Generally Accepted Accounting Principles to receive performance-based payments

Key terms: performance-based payments · Generally Accepted Accounting Principles · Defense Contract Audit Agency

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

The text

In accordance with 10 U.S.C. 3802(c)(1), a contractor's financial statements shall be in compliance with Generally Accepted Accounting Principles in order to receive performance-based payments. 10 U.S.C. 3802(c)(2) specifies that it does not grant the Defense Contract Audit Agency the authority to audit compliance with Generally Accepted Accounting Principles.

Sections that refer to it

← 232.1001 Policy. · 232.1004 Procedures. →

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 232.1003-70 Criteria for use · SpendQuery