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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.5

FAR 32.502-2 Contract finance office clearance.

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 requires the contracting officer to get approval from the contract finance office or other designated offices before taking certain actions related to progress payments. It matters to contractors because it means decisions about higher payment rates, non-standard payment terms, or payments to contractors with financial concerns are subject to additional internal review.

Applies to: Contracting officers and contractors receiving or requesting progress payments

Key terms: progress payment rate · customary rate · progress payments · contract finance office · Hold-up List

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

The text

The contracting officer shall obtain the approval of the contract finance office or other offices designated under agency procedures before taking any of the following actions:

(a) Providing a progress payment rate higher than the customary rate (see 32.501-1).

(b) Deviating from the progress payments terms prescribed in this part.

(c) Providing progress payments to a contractor—

(1) Whose financial condition is in doubt;

(2) Who has had an advance payment request or loan guarantee denied for financial reasons (or approved but withdrawn or lapsed) within the previous 12 months; or

(3) Who is named in the consolidated list of contractors indebted to the United States (known commonly as the Hold-up List).

Sections it refers to

  • 32.501-1 Customary progress payment rates.

Sections that refer to it

  • 32.501-2 Unusual progress payments.
  • 32.504 Subcontracts under prime contracts providing progress payments.

← 32.502-1 Use of customary progress payments. · 32.502-3 Solicitation provisions. →

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 32.502-2 Contract finance office clearance · SpendQuery