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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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69 sections with “financing for contract performance”: the first 40

  • FAR 32.005 Consideration for contract financing.
    (a) Requirement. When a contract financing clause is included at the inception of a contract, there shall be no separate consideration for the contract financing clause. The value of the contract financing to the contractor is expected to b…
  • DFARS 252.232-7012 Performance-Based Payments—Whole-Contract Basis.
    …CT BASIS (DEC 2022) (a) Performance-based payments shall form the basis for the contract financing payments provided under this contract, and shall apply to the whole contract. The performance-based payments schedule (Contract Attachment _…
  • FAR 32.004 Contract performance in foreign countries.
    The enforceability of contract provisions for security of Government financing in a foreign jurisdiction is dependent upon local law and procedure. Prior to providing contract financing where foreign jurisdictions may become involved, the c…
  • FAR 32.102 Description of contract financing methods.
    …s incurred by the contractor as work progresses under the contract. This form of contract financing does not include— (1) Payments based on the percentage or stage of completion accomplished; (2) Payments for partial deliveries accepted b…
  • FAR 32.104 Providing contract financing.
    (a) Prudent contract financing can be a useful working tool in Government acquisition by expediting the performance of essential contracts. Contracting officers must consider the criteria in this part in determining whether to include contr…
  • FAR 32.113 Customary contract financing.
    The solicitation must specify the customary contract financing offerors may propose. The following are customary contract financing when provided in accordance with this part and agency regulations: (a) Financing of shipbuilding, or ship c…
  • FAR 32.202-4 Security for Government financing.
    … 3805and 41 U.S.C. 4505 require the Government to obtain adequate security for Government financing. The contracting officer shall specify in the solicitation the type of security the Government will accept. If the Government is willing to …
  • FAR 52.232-27 Prompt Payment for Construction Contracts.
    …d, provided such date is no later than the 40th day after payment was made. (b) Contract financing payments. If this contract provides for contract financing, the Government will make contract financing payments in accordance with the appl…
  • FAR 52.232-28 Invitation To Propose Performance-Based Payments.
    … offeror to propose terms under which the Government will make performance-based contract financing payments during contract performance. The Government will consider performance-based payment financing terms proposed by the offeror in the …
  • FAR 52.232-29 Terms for Financing of Purchases of Commercial Products and Commercial Services.
    As prescribed in 32.206(b)(2), insert the following clause: Terms for Financing of Purchases of Commercial Products and Commercial Services (NOV 2021) (a) Contractor entitlement to financing payments. The Contractor may request, and the G…
  • DFARS 252.232-7013 Performance-Based Payments—Deliverable-Item Basis.
    …em Basis (DEC 2022) (a) Performance-based payments shall form the basis for the contract financing payments provided under this contract and shall apply to Contract Line Item Number(s) (CLIN(s)) [Contracting Officer insert applicable CLIN(…
  • FAR 32.105 Uses of contract financing.
    (a) Contract financing methods covered in this part are intended to be self-liquidating through contract performance. Consequently, agencies shall only use the methods for financing of contractor working capital, not for the expansion of co…
  • FAR 32.305 Loan guarantees for terminated contracts.
    (a) The purpose of guaranteed loans; i.e., to provide for financing based on the borrower's recoverable investment in defense production contracts, may also apply to contracts that have been terminated (partially or totally) for the conveni…
  • FAR 32.109 Termination financing.
    …bility of the contract to termination for the convenience of the Government, the contract financing procedures under this part may be applied to the financing of terminations either in connection with or independently of financing for contr…
  • FAR 32.504 Subcontracts under prime contracts providing progress payments.
    …ts for commercial purchases may include commercial product or commercial service purchase financing terms, provided they meet the criteria in 32.202-1. (b) The contractor's requests for progress payments may include the full amount of comm…
  • FAR 52.232-30 Installment Payments for Commercial Products and Commercial Services.
    …for Commercial Products and Commercial Services (NOV 2021) (a) Contractor entitlement to financing payments. The Contractor may request, and the Government shall pay, a contract financing installment payment as specified in this contract w…
  • FAR 52.232-31 Invitation To Propose Financing Terms.
    …rescribed in 32.205(b) and 32.206, insert the following provision: Invitation To Propose Financing Terms (DEC 2022) (a) The offeror is invited to propose terms under which the Government shall make contract financing payments during contr…
  • FAR 52.232-32 Performance-Based Payments.
    …s being payable. (2) A payment under this performance-based payment clause is a contract financing payment under the Prompt Payment clause of this contract and not subject to the interest penalty provisions of the Prompt Payment Act. The d…
  • DFARS 232.007 Contract financing payments.
    (a) DoD policy is to make contract financing payments as quickly as possible. Generally, the contracting officer shall insert the standard due dates of 7 days for progress payments, and 14 days for performance-based payments and interim pay…
  • DFARS 232.104 Providing contract financing.
    … for the contractor to demonstrate actual financial need or the unavailability of private financing, DoD has determined that— (1) The use of customary contract financing (see FAR 32.113), other than loan guarantees and advance payments, is…
  • FAR 32.110 Payment of subcontractors under cost-reimbursement prime contracts.
    If the contractor makes financing payments to a subcontractor under a cost-reimbursement prime contract, the contracting officer should accept the financing payments as reimbursable costs of the prime contract only under the following condi…
  • FAR 32.1007 Administration and payment of performance-based payments.
    …all review and approve all performance-based payments for that contract. (b) Approval of financing requests. Unless otherwise provided in agency regulations, or by agreement with the appropriate payment official— (1) The contracting offic…
  • FAR 33.213 Obligation to continue performance.
    … the contracting officer shall consider providing, through appropriate agency procedures, financing of the continued performance; provided, that the Government's interest is properly secured.
  • FAR 42.502 Selecting contracts for postaward orientation.
    … (k) Safety precautions required for hazardous materials or operations; and (l) Complex financing arrangements, such as progress payments, advance payments, or guaranteed loans.
  • DFARS 212.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
    …ts, as prescribed in 229.402-70, to comply with 26 U.S.C. 5000C. (xiv) Part 232—Contract Financing. (A) Use the clause at 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports, as prescribed in 232.7004, to comply w…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    …gnition to the contractor's cost of working capital under varying contract circumstances, financing policies, and the economic environment. (b) Determination. The following extract from the DD 1547 is annotated to explain the process. (1)…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …ayment due as a result of performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. 3727). However, when a third pa…
  • FAR 52.216-26 Payments of Allowable Costs Before Definitization.
    … contract at the following rates: (1) One hundred percent of approved costs representing financing payments to subcontractors under fixed-price subcontracts, provided that the Government's payments to the Contractor will not exceed 80 perc…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …ces. (1) Interim payments made prior to the final payment under the contract are contract financing payments. Contract financing payments are not subject to the interest penalty provisions of the Prompt Payment Act. (2) The designated paym…
  • DFARS 232.102 Description of contract financing methods.
    (e)(2) Progress payments based on percentage or stage of completion are authorized only for contracts for construction (as defined in FAR 36.102), shipbuilding, and ship conversion, alteration, or repair. However, percentage or state of com…
  • FAR 32.001 Definitions.
    …at is not a commercial advance payment or a delivery payment. These payments are contract financing payments for prompt payment purposes (i.e., not subject to the interest penalty provisions of the Prompt Payment Act in accordance with subp…
  • FAR 32.202-1 Policy.
    (a) Use of financing in contracts. It is the responsibility of the contractor to provide all resources needed for performance of the contract. Thus, for purchases of commercial products or commercial services, financing of the contract is n…
  • FAR 32.202-2 Types of payments for commercial product and commercial service purchases.
    These definitions incorporate the requirements of the statutory commercial financing authority and the implementation of the Prompt Payment Act. Commercial advance payment, as used in this section, means a payment made before any performan…
  • FAR 32.304-2 Certificate of eligibility.
    …that the contracting officer deems to be of material consequence, when— (1) The contract financing office requests it; (2) Another interested agency requests it; or (3) The application for a loan guarantee relates to a contract or subcon…
  • FAR 32.1004 Procedures.
    …ntract or on a deliverable item basis, unless otherwise prescribed by agency regulations. Financing payments to be made on a whole contract basis are applicable to the entire contract, and not to specific deliverable items. Financing paymen…
  • FAR 52.216-7 Allowable Cost and Payment.
    … by a statement of the claimed allowable cost for performing this contract. (2) Contract financing payments are not subject to the interest penalty provisions of the Prompt Payment Act. Interim payments made prior to the final payment unde…
  • FAR 52.232-16 Progress Payments.
    … Contractor's total costs incurred under this contract whether or not actually paid, plus financing payments to subcontractors (see paragraph (j) of this clause), less the sum of all previous progress payments made by the Government under t…
  • DFARS 232.072-2 Appropriate information.
    …te projections. (6) Cash forecast for the duration of the contract (see 232.072-3). (7) Financing arrangement information that discloses— (i) Availability of cash to finance contract performance; (ii) Contractor's exposure to financial …
  • DFARS 252.232-7003 Electronic Submission of Payment Requests and Receiving Reports.
    …ests and Receiving Reports (DEC 2018) (a) Definitions. As used in this clause— Contract financing payment means an authorized Government disbursement of monies to a contractor prior to acceptance of supplies or services by the Government.…
  • FAR 9.406-2 Causes for debarment.
    …gnificant overpayment(s) on the contract, other than overpayments resulting from contract financing payments as defined in 32.001. (vii) Determination of a false certification under 52.209-13, Violation of Arms Control Treaties or Agreemen…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.