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FAR and DFARS › FAR Part 32: Contract Financing

FAR 32.007 Contract financing payments.

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 sets the due date for contract financing payments as generally the 30th day after the designated billing office receives a proper contract financing request, though an audit or review can excuse payment by that date. It also states that the Government will not pay an interest penalty for delayed contract financing payments. Contractors should know that financing payments are not subject to the same interest-penalty protections as other payments.

Applies to: Contract financing payments made by the designated payment office

What it requires

  • Submit a proper contract financing request that complies with the contract's terms and conditions
  • Correct any defects in requests as specified in the contract or directed by the contracting officer

Key terms: contract financing payments · designated payment office · designated billing office · proper contract financing request · interest penalty

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

The text

(a)(1) Unless otherwise prescribed in agency policies and procedures or otherwise specified in paragraph (b) of this section, the due date for making contract financing payments by the designated payment office is the 30th day after the designated billing office receives a proper contract financing request.

(2) If an audit or other review of a specific financing request is required to ensure compliance with the terms and conditions of the contract, the designated payment office is not compelled to make payment by the specified due date.

(3) Agency heads may prescribe shorter periods for payment based on contract pricing or administrative considerations. For example, a shorter period may be justified by an agency if the nature and extent of contract financing arrangements are integrated with agency contract pricing policies.

(4) Agency heads must not prescribe a period shorter than 7 days or longer than 30 days.

(b) For advance payments, loans, or other arrangements that do not involve recurrent submission of contract financing requests, the designated payment office will make payment in accordance with the applicable contract financing terms or as directed by the contracting officer.

(c) A proper contract financing request must comply with the terms and conditions specified by the contract. The contractor must correct any defects in requests submitted in the manner specified in the contract or as directed by the contracting officer.

(d) The designated billing office and designated payment office must annotate each contract financing request with the date their respective offices received the request.

(e) The Government will not pay an interest penalty to the contractor as a result of delayed contract financing payments.

← 32.006-5 Reporting. · 32.008 Notification of overpayment. →

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 32.007 Contract financing payments · SpendQuery