SpendQueryBeta

FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.4

FAR 32.405 Applying Pub. L. 85-804 to advance payments under sealed bid contracts.

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 that designated agencies can make advance payments under sealed bid contracts, as well as negotiated contracts, to facilitate the national defense. Bidders may request advance payments before or after award, but a bid cannot require advance payments as a condition for acceptance. If advance payments are requested, the agency may award with advance payments, award without them if not actually needed, or deny award if the request was disapproved and the offeror lacks adequate funds.

Applies to: Designated agencies and bidders on sealed bid contracts

What it requires

  • The contracting officer shall reject any bid requiring that advance payments be provided as a basis for acceptance.

Key terms: advance payments · sealed bid contracts · negotiated contracts · invitation for bids · award

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

The text

(a) Actions that designated agencies may take to facilitate the national defense without regard to other provisions of law relating to contracts, as explained in 50.101-1(a), also include making advance payments. These advance payments may be made at or after award of sealed bid contracts as well as negotiated contracts.

(b) Bidders may request advance payments before or after award, even if the invitation for bids does not contain an advance payment provision. However, the contracting officer shall reject any bid requiring that advance payments be provided as a basis for acceptance.

(c) When advance payments are requested, the agency may—

(1) Enter into the contract and provide for advance payments conforming to this part 32;

(2) Enter into the contract without providing for advance payments if the contractor does not actually need advance payments; or

(3) Deny award of the contract if the request for advance payments has been disapproved under 32.409-2 and funds adequate for performance are not otherwise available to the offeror.

Sections it refers to

Sections that refer to it

← 32.404 Exclusions. · 32.406 Letters of credit. →

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 32.405 Applying Pub. L. 85-804 to advance payments under sealed bid contracts · SpendQuery