FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.1
FAR 32.113 Customary contract 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 lists the types of contract financing that are considered customary, such as progress payments, performance-based payments, advance payments, and guaranteed loans, depending on how the contract is awarded. It matters because the solicitation must state which customary financing offerors may propose, so contractors know what financing options are available before bidding.
Applies to: Contractors seeking customary contract financing on solicitations covered by this part
What it requires
- The solicitation must specify the customary contract financing offerors may propose.
Key terms: customary contract financing · progress payments based on costs · performance-based payments · advance payments · guaranteed loans
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The solicitation must specify the customary contract financing offerors may propose. The following are customary contract financing when provided in accordance with this part and agency regulations:
(a) Financing of shipbuilding, or ship conversion, alteration, or repair, when agency regulations provide for progress payments based on a percentage or stage of completion.
(b) Financing of construction or architect-engineer services purchased under the authority of part 36.
(c) Financing of contracts for supplies or services awarded under the sealed bid method of procurement in accordance with part 14 through progress payments based on costs in accordance with subpart 32.5.
(d) Financing of contracts for supplies or services awarded under the competitive negotiation method of procurement in accordance with part 15, through either progress payments based on costs in accordance with subpart 32.5, or performance-based payments in accordance with subpart 32.10 (but not both).
(e) Financing of contracts for supplies or services awarded under a sole-source acquisition as defined in 2.101 and using the procedures of part 15, through either progress payments based on costs in accordance with subpart 32.5, or performance-based payments in accordance with subpart 32.10 (but not both).
(f) Financing of contracts for supplies or services through advance payments in accordance with subpart 32.4.
(g) Financing of contracts for supplies or services through guaranteed loans in accordance with subpart 32.3.
(h) Financing of contracts for supplies or services through any appropriate combination of advance payments, guaranteed loans, and either performance-based payments or progress payments (but not both) in accordance with their respective subparts.
Sections it refers to
- 2.101 Definitions.
← 32.112-2 Subcontractor requests for information. · 32.114 Unusual contract financing. →
Rule changes for FAR Part 32
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-08-07 · effective 2025-08-07
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.