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

FAR 32.204 Procedures for contracting officer-specified commercial 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 explains how the contracting officer's specified commercial contract financing terms are handled in a solicitation. The financing terms must be stated in the solicitation, but they cannot be used to evaluate proposals or to adjust proposed prices. An offeror may decline the financing without making its offer unacceptable, and if it wins, the financing provisions are left out of the contract.

Applies to: Contracting officers and offerors on solicitations that include contracting officer-specified commercial contract financing

What it requires

  • Include the financing terms in the solicitation
  • Do not treat contract financing as a factor in evaluating proposals
  • Do not accept proposals of alternative financing terms
  • Do not adjust offerors' proposed prices based on contract financing

Key terms: contract financing · solicitation · offeror · nonresponsive · proposed prices

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

The text

The financing terms shall be included in the solicitation. Contract financing shall not be a factor in the evaluation of resulting proposals, and proposals of alternative financing terms shall not be accepted (but see 14.208 and 15.206 concerning amendments of solicitations). However, an offer stating that the contracting officer-specified contract financing terms will not be used by the offeror does not alter the evaluation of the offer, nor does it render the offer nonresponsive or otherwise unacceptable. In the event of award to an offeror who declined the proposed contract financing, the contract financing provisions shall not be included in the resulting contract. Contract financing shall not be a basis for adjusting offerors' proposed prices, because the effect of contract financing is reflected in each offeror's proposed prices.

Sections it refers to

  • 14.208 Amendment of invitation for bids.
  • 15.206 Amending the solicitation.

Sections that refer to it

  • 32.203 Determining contract financing terms.
  • 32.206 Solicitation provisions and contract clauses.

← 32.203 Determining contract financing terms. · 32.205 Procedures for offeror-proposed 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 32.204 Procedures for contracting officer-specified commercial contract financing · SpendQuery