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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.232-7005 Reimbursement of Subcontractor Advance Payments—DoD Mentor-Protégé Program.

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 clause lets a mentor firm get reimbursed by the Government for advance payments it makes to a protégé firm under an approved DoD Mentor-Protégé agreement. To qualify, the mentor must include an advance-payments provision in its subcontract, follow FAR subpart 32.4 policies, and accept that any loss from the protégé not repaying unliquidated advance payments is the mentor's own financial responsibility.

Applies to: DoD contractors acting as mentor firms making advance payments to protégé firms

What it requires

  • Include a provision substantially the same as FAR 52.232-12 in the subcontract with the protégé firm
  • Administer advance payments in accordance with FAR subpart 32.4 policies
  • Agree that any financial loss from the protégé's failure or inability to repay unliquidated advance payments is the Contractor's sole financial responsibility
  • For fixed price contracts, attach a separate reimbursement request to each SF 1443 showing a separate calculation of lines 14a through 14e for each protégé

Key terms: advance payments · mentor firm · protégé firm · mentor-protégé agreement · unliquidated advance payments

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

The text

As prescribed in 232.412-70(b), use the following clause:

Reimbursement of Subcontractor Advance Payments—DoD Mentor-Protégé Program (MAR 2024)

(a) The Government will reimburse the Contractor for any advance payments made by the Contractor, as a mentor firm, to a protégé firm, pursuant to an approved mentor-protégé agreement, provided—

(1) The Contractor's subcontract with the protégé firm includes a provision substantially the same as FAR 52.232-12, Advance Payments;

(2) The Contractor has administered the advance payments in accordance with the policies of FAR subpart 32.4; and

(3) The Contractor agrees that any financial loss resulting from the failure or inability of the protégé firm to repay any unliquidated advance payments is the sole financial responsibility of the Contractor.

(b) For a fixed price type contract, advance payments made to a protégé firm shall be paid and administered as if there were 100 percent progress payments. The Contractor shall include as a separate attachment with each Standard Form (SF) 1443, Contractor's Request for Progress Payment, a request for reimbursement of advance payments made to a protégé firm. The attachment shall provide a separate calculation of lines 14a through 14e of SF 1443 for each protégé, reflecting the status of advance payments made to that protégé.

(c) For cost reimbursable, contracts, reimbursement of advance payments shall be made via public voucher. The Contractor shall show the amounts of advance payments made to each protégé on the public voucher, in the form and detail directed by the cognizant contracting officer or contract auditor.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.232-7004 DoD Progress Payment Rates. · 252.232-7006 Wide Area WorkFlow Payment Instructions. →

Rule changes for DFARS Part 252

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

DFARS 252.232-7005 Reimbursement of Subcontractor Advance Payments—DoD Mentor-Protégé Program · SpendQuery