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-Part 32 - Contract Financing .....................................................................................................82+Part 32 - Contract Financing
+FC 32.007 Contract financing payments.
+Unless otherwise prescribed, the due date for making contract financing payments by the
+designated payment office is the 30th day after the designated billing office receives a proper
+contract financing request. If an audit or other review of a specific financing request is required
+to ensure compliance with the terms and conditions of the contract, the designated payment
+office is not compelled to make payment by the specified due date.
+Agency heads may prescribe shorter periods for payment based on contract pricing or
+administrative considerations. For example, a shorter period may be justified by an agency if the
+nature and extent of contract financing arrangements are integrated with agency contract pricing
+policies.
+For advance payments, loans, or other arrangements that do not involve recurrent submission
+of contract financing requests, the designated payment office will make payment in accordance
+with the applicable contract financing terms or as directed by the contracting officer.
+The designated billing office and designated payment office should annotate each contract
+financing request with the date their respective offices received the request.
+FC 32.403 Applicability of advance payments for other than commercial acquisitions.
+Advance payments may be considered useful and appropriate in, but not limited to, the following
+circumstances:
+1. Contracts for experimental, research, or development work with nonprofit educational or
+research institutions;
+2. Contracts solely for the management and operation of government-owned plants;
+3. Contracts for acquisition, at cost, of property for government ownership;
+4. Contracts of such a highly classified nature that the agency considers it undesirable for
+national security to permit assignment of claims under the contract;
+5. Contracts entered into with financially weak contractors whose technical ability is
+considered essential to the agency. In these cases, the agency should closely monitor
+the contractor's performance and financial controls to reduce the government's financial
+risk;
+6. Contracts for which a loan by a private financial institution is not practicable, whether or
+not a loan guarantee under this part is issued; for example, if financing institutions will
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+not assume a reasonable portion of the risk under a guaranteed loan or if loans with
+reasonable interest rates or finance charges are not available to the contractor;
+7. Contracts that involve operations so remote from a financial institution that the institution
+could not be expected to suitably administer a guaranteed loan;
+8. Contracts with small business concerns, under which circumstances that make advance
+payments appropriate often occur (but see FAR 32.104(b)); or
+9. Contracts under which exceptional circumstances make advance payments the most
+advantageous contract financing method for both the government and the contractor.
+FC 32.607-2 Deferment of collection.
+As required under FAR 32.607-2(a), all requests for deferment of collection must be submitted
+in writing to the contracting officer. If the contractor has appealed the debt under the procedures
+of the Disputes clause of the contract, the information with the request for deferment may be
+limited to an explanation of the contractor's financial condition. Actions filed by contractors
+under the Disputes clause should not suspend or delay collection.
+If there is no appeal pending or action filed under the Disputes clause of the contract, the
+following information about the contractor should be submitted with the request:
+● Financial condition.
+● Contract backlog.
+● Projected cash receipts and requirements.
+● The feasibility of immediate payment of the debt.
+● The probable effect on operations of immediate payment in full.
+Upon receipt of the contractor's written request, the contracting officer should promptly provide
+a notification to the payment office and advise the payment office that the contractor's request is
+under consideration. The contracting officer should consider any information necessary to
+develop a recommendation on the deferment request. The contracting officer should forward the
+following to the office designated in agency procedures for a decision:
+● A copy of the contractor's request for a deferment of collection.
+● A written recommendation on the request and the basis for the recommendation
+including the advisability of deferment to avoid possible overcollections.
+● A statement as to whether the contractor has an appeal pending or action filed under the
+Disputes clause of the contract and the docket number if the appeal has been filed.
+● A copy of the contracting officer's final decision (see FAR 32.605).
+The office designated in agency procedures may authorize a deferment pending the resolution
+of appeal to avoid possible overcollections. The agency is required to use unexpired funds to
+pay interest on overcollections.
+FC 32.704 Tailoring the limitation of cost or funds clause.
+When applying the Limitation of Cost clause (FAR 52.232-20) or the Limitation of Funds clause
+(FAR 52.232-22), the standard 60-day period may be varied, such as from 30 to 90 days, or the
+75 percent incurred costs from 75 percent to 85 percent. “Task Order” or other appropriate
+designation may be substituted for “Schedule” wherever that word appears in the clause.
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