FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.4
FAR 32.412 Contract clause.
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 tells the contracting officer which version of the Advance Payments clause (52.232-12) to put in a solicitation or contract when the Government will provide advance payments. It matters to contractors because the version used determines the terms that apply to those advance payments, such as countersignature requirements, liquidation timing, and whether a special account is required.
Applies to: Contracting officers handling solicitations and contracts that provide for Government advance payments
Key terms: advance payments · contracting officer · 52.232-12 · Alternate I · special account
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) The contracting officer shall insert the clause at 52.232-12, Advance Payments, in solicitations and contracts under which the Government will provide advance payments, except as provided in 32.412(b).
(b) If the agency desires to waive the countersignature requirement because of the contractor's financial strength, good performance record, and favorable experience concerning cost disallowances, the contracting officer shall use the clause with its Alternate I.
(c) If a cost-reimbursement contract is contemplated, the contracting officer shall use the clause with its Alternate II.
(d) If the agency considers a more rapid liquidation appropriate, the contracting officer shall use the clause with its Alternate III.
(e) If the agency provides advance payments under the contract at no interest to the prime contractor, the contracting officer shall use the clause with its Alternate IV.
(f) If the requirement for a special account is eliminated in accordance with 32.409-3 (e) or (g), the contracting officer shall insert in the solicitation or contract the clause set forth in Alternate V of 52.232-12, Advance Payments, instead of the basic clause.
Sections that refer to it
- 52.232-12 Advance Payments.
← 32.411 Agreement for special account at a financial institution. · 32.500 Scope of subpart. →
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.