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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.2

FAR 32.203 Determining contract financing terms.

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 how the contracting officer decides the financing terms for a contract. If certain criteria are met, the officer can either state the financing terms in the solicitation or let each offeror propose its own customary terms. When the officer knows the customary commercial financing terms for the item, those terms may be included in the solicitation.

Applies to: Contracting officers and offerors on contracts involving contract financing

Key terms: contract financing terms · solicitation · customary financing terms · commercial marketplace

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

The text

When the criteria in 32.202-1(b) are met, the contracting officer may either specify the financing terms in the solicitation (see 32.204) or permit each offeror to propose its own customary financing terms (see 32.205). When the contracting officer has sufficient information on financing terms that are customary in the commercial marketplace for the item, those terms may be specified in the solicitation.

Sections it refers to

  • 32.202-1 Policy.
  • 32.204 Procedures for contracting officer-specified commercial contract financing.
  • 32.205 Procedures for offeror-proposed commercial contract financing.

← 32.202-4 Security for Government financing. · 32.204 Procedures for contracting officer-specified commercial contract financing. →

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 32.203 Determining contract financing terms · SpendQuery