SpendQueryBeta

FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.10

FAR 32.1009 Title.

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 addresses how the Government's title to property under the Performance-Based Payments clause must be protected from other claims or liens. It tells the contracting officer to rely on the contractor's certification unless there is reason to doubt it, and to act if any encumbrance is discovered. For contractors, it means that failing to disclose an existing encumbrance can lead to reduced or suspended payments and possible False Claims Act concerns.

Applies to: Contractors receiving performance-based payments and the contracting officers administering those contracts

What it requires

  • Do not allow Government title to be compromised by other encumbrances
  • Disclose any existing encumbrance in the payment request certification

Key terms: Performance-Based Payments · title · encumbrances · certification · False Claims Act

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

The text

(a) Since the clause at 52.232-32, Performance-Based Payments, gives the Government title to the property described in paragraph (f) of the clause, the contracting officer shall ensure that the Government title is not compromised by other encumbrances. Ordinarily, the contracting officer, in the absence of reason to believe otherwise, may rely upon the contractor's certification contained in the payment request.

(b) If the contracting officer becomes aware of any arrangement or condition that would impair the Government's title to the property affected by the Performance-Based Payments clause, the contracting officer shall require additional protective provisions.

(c) The existence of any such encumbrance is a violation of the contractor's obligations under the contract, and the contracting officer may, if necessary, suspend or reduce payments under the terms of the Performance-Based Payments clause covering failure to comply with a material requirement of the contract. In addition, if the contractor fails to disclose an existing encumbrance in the certification, the contracting officer should consult with legal counsel concerning possible violation of 31 U.S.C. 3729, the False Claims Act.

Sections it refers to

← 32.1008 Suspension or reduction of performance-based payments. · 32.1010 Risk of loss. →

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 32.1009 Title · SpendQuery