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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.1

FAR 32.109 Termination financing.

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 says that contract financing procedures under FAR Part 32 may be used to finance terminations, either alongside or separately from financing for contract performance. It is intended to encourage contractors to invest their own funds in performance even when the contract could be terminated for the Government's convenience.

Applies to: Contractors whose contracts may be terminated for the convenience of the Government

Key terms: termination for the convenience of the Government · contract financing procedures · financing of terminations · financing for contract performance

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

The text

To encourage contractors to invest their own funds in performance despite the susceptibility of the contract to termination for the convenience of the Government, the contract financing procedures under this part may be applied to the financing of terminations either in connection with or independently of financing for contract performance (see 49.112-1).

Sections it refers to

← 32.108 Financial consultation. · 32.110 Payment of subcontractors under cost-reimbursement prime contracts. →

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 32.109 Termination financing · SpendQuery