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FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.4

DFARS 232.470 Advance payment pool.

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 describes what an advance payment pool agreement is under DFARS. It is a way to finance the performance of more than one contract held by a single contractor, and it is especially useful for cost-type contracts with nonprofit educational or research institutions doing experimental or research and development work. It can also be used for other contract types when appropriate.

Applies to: Contractors holding multiple contracts, especially nonprofit educational or research institutions with cost-type contracts

Key terms: advance payment pool agreement · advance payments · cost-type contracts · nonprofit educational or research institutions · contracting activity

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

The text

(a) An advance payment pool agreement—

(1) Is a means of financing the performance of more than one contract held by a single contractor;

(2) Is especially convenient for the financing of cost-type contracts with nonprofit educational or research institutions for experimental or research and development work when several contracts require financing by advance payments. When appropriate, pooled advance payments may also be used to finance other types of contracts held by a single contractor; and

(3) May be established—

(i) Without regard to the number of appropriations involved;

(ii) To finance contracts for one or more department(s) or contracting activity(ies); or

(iii) In addition to any other advance payment pool agreement at a single contractor location when it is more convenient or otherwise preferable to have more than one agreement.

← 232.412-70 Additional clauses. · 232.501 General. →

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 232.470 Advance payment pool · SpendQuery