SpendQueryBeta

FAR and DFARS › FAR Part 32: Contract Financing

FAR 32.006-1 General.

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 explains the statutory authority for reducing or suspending payments to a contractor when the agency head finds substantial evidence that the contractor's request for advance, partial, or progress payments is based on fraud. It applies to DoD and NASA under one statute and to other agencies under another, but not to the Coast Guard. The authority does not cover commercial interim payments or performance-based payments.

Applies to: Agencies and contractors involved with advance, partial, or progress payments

Key terms: advance payments · partial payments · progress payments · fraud · agency head

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

The text

(a) Under 10 U.S.C. 3806(j), the statutory authority implemented by this section is available to the Department of Defense and the National Aeronautics and Space Administration; this statutory authority is not available to the United States Coast Guard. Under 41 U.S.C. 4506, this statutory authority is available to all agencies subject to Division C of subtitle I of title 41.

(b) 10 U.S.C. 3806(c)and 41 U.S.C. 4506 provide for a reduction or suspension of further payments to a contractor when the agency head determines there is substantial evidence that the contractor's request for advance, partial, or progress payments is based on fraud. This authority does not apply to commercial interim payments under subpart 32.2, or performance-based payments under subpart 32.10.

(c) The agency head may not delegate his or her responsibilities under these statutes below Level IV of the Executive Schedule.

(d) Authority to reduce or suspend payments under these statutes is in addition to other Government rights, remedies, and procedures.

(e) In accordance with these statutes, agency head determinations and decisions under this section may be made for an individual contract or any group of contracts affected by the fraud.

← 32.006 Reduction or suspension of contract payments upon finding of fraud. · 32.006-2 Definition. →

Rule changes for FAR Part 32

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

FAR 32.006-1 General · SpendQuery