FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.1
DFARS 232.104 Providing contract financing.
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 addresses contract financing for fixed-price contracts with a period of performance over one year that meet certain dollar thresholds in FAR 32.104(d). For these contracts, DoD has determined that using customary contract financing (other than loan guarantees and advance payments) is in its best interest, and that further justification for using it in individual acquisitions is unnecessary. This matters because it removes the requirement for contractors to demonstrate actual financial need or the unavailability of private financing for such contracts.
Applies to: Fixed-price contracts with a period of performance over one year that meet FAR 32.104(d) dollar thresholds, and solicitations expected to result in such contracts
Key terms: customary contract financing · loan guarantees · advance payments · fixed-price contracts · period of performance
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
For fixed-price contracts with a period of performance in excess of a year that meet the dollar thresholds established in FAR 32.104(d), and for solicitations expected to result in such contracts, in lieu of the requirement at FAR 32.104(d)(1)(ii) for the contractor to demonstrate actual financial need or the unavailability of private financing, DoD has determined that—
(1) The use of customary contract financing (see FAR 32.113), other than loan guarantees and advance payments, is in DoD's best interest; and
(2) Further justification of its use in individual acquisitions is unnecessary.
← 232.102-70 Provisional delivery payments. · 232.202-4 Security for Government financing. →
Rule changes for DFARS Part 232
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-07-29 · effective 2024-07-29
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.