SpendQueryBeta

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

FAR 32.408 Application for advance payments.

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 a contractor can apply for advance payments, either before or after a contract is awarded. It requires the contractor to submit a written request to the contracting officer with specific information, such as a cash flow forecast and the proposed advance amount. This matters because it outlines the steps a contractor must take to request advance payments and what details to provide.

Applies to: Contractors applying for advance payments

What it requires

  • Submit any advance payment request in writing to the contracting officer.
  • Provide a reference to the contract or solicitation.
  • Provide a cash flow forecast showing estimated disbursements and receipts for the period of contract performance.
  • Provide the proposed total amount of advance payments.

Key terms: advance payments · contracting officer · cash flow forecast · special account · V-loan

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

The text

(a) A contractor may apply for advance payments before or after the award of a contract.

(b) The contractor shall submit any advance payment request in writing to the contracting officer and provide the following information:

(1) A reference to the contract if the request concerns an existing contract, or a reference to the solicitation if the request concerns a proposed contract.

(2) A cash flow forecast showing estimated disbursements and receipts for the period of contract performance. If the application pertains to a type of contract described in 32.403(a) or (b), the contractor shall limit the forecast to the contract to be financed by advance payments.

(3) The proposed total amount of advance payments.

(4) The name and address of the financial institution at which the contractor expects to establish a special account as depository for the advance payments. If advance payments in the form of a letter of credit are anticipated, the contractor shall identify the specific account at the financial institution to be used. This subparagraph (4) is not applicable if an alternate method is used under agency procedures.

(5) A description of the contractor's efforts to obtain unguaranteed private financing or a V-loan (see 32.301) under eligible contracts. This requirement is not applicable to the contract types described in 32.403(a) or (b).

(6) Other information appropriate to an understanding of (i) the contractor's financial condition and need, (ii) the contractor's ability to perform the contract without loss to the Government, and (iii) financial safeguards needed to protect the Government's interest. Ordinarily, if the contract is a type described in 32.403(a) or (b), the contractor may limit the response to this subparagraph (6) to information on the contractor's reliability, technical ability, and accounting system and controls.

Sections it refers to

← 32.407 Interest. · 32.409 Contracting officer action. →

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 32.408 Application for advance payments · SpendQuery