[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR32.007]

[Page 626-627]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 32--CONTRACT FINANCING--Table of Contents
 
Sec. 32.007  Contract financing payments.

    (a)(1) Unless otherwise prescribed in agency policies and procedures 
or otherwise specified in paragraph (b) of this section, 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.
    (2) 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.
    (3) 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.
    (4) Agency heads must not prescribe a period shorter than 7 days or 
longer than 30 days.
    (b) 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.

[[Page 627]]

    (c) A proper contract financing request must comply with the terms 
and conditions specified by the contract. The contractor must correct 
any defects in requests submitted in the manner specified in the 
contract or as directed by the contracting officer.
    (d) The designated billing office and designated payment office must 
annotate each contract financing request with the date their respective 
offices received the request.
    (e) The Government will not pay an interest penalty to the 
contractor as a result of delayed contract financing payments.

[66 FR 65355, Dec. 18, 2001]