SUBPART 232.2--COMMERCIAL ITEM PURCHASE
FINANCING
232.202-4 Security for
Government financing.
232.206 Solicitation provisions
and contract clauses.
232.207 Administration and
payment of commercial financing payments.
232.202-4 Security for
Government financing.
(a)(2) When determining
whether an offeror’s financial condition is adequate security, see 232.072-2
and 232.072-3 for guidance. It should
be noted that an offeror’s financial condition may be sufficient to make the
contractor responsible for award purposes, but may not be adequate security for
commercial contract financing.
232.206 Solicitation provisions
and contract clauses.
(d) Instructions for multiple appropriations. If the contract contains foreign military
sales requirements, the contracting officer shall provide instructions for
distribution of the contract financing payments to each country’s account.
(f) Prompt payment for commercial purchase
payments. The contracting officer
shall incorporate the following standard prompt payment terms for commercial
item contract financing:
(i) Commercial
advance payments: The contractor
entitlement date specified in the contract, or 30 days after receipt by the
designated billing office of a proper request for payment, whichever is later.
(ii) Commercial
interim payments: The contractor
entitlement date specified in the contract, or 14 days after receipt by the
designated billing office of a proper request for payment, whichever is
later. The prompt payment standards for
commercial delivery payments shall be the same as specified in FAR Subpart 32.9
for invoice payments for the item delivered.
(g) Installment payment financing for commercial
items. Installment payment
financing shall not be used for DoD contracts, unless market research has
established that this form of contract financing is both appropriate and
customary in the commercial marketplace.
When installment payment financing is used, the contracting officer
shall use the ceiling percentage of contract price that is customary in the
particular marketplace (not to exceed the maximum rate established in FAR
52.232-30).
232.207 Administration and
payment of commercial financing payments.
(b)(2) If the contract contains foreign military sales requirements, each approval shall specify the amount of contract financing to be charged to each country’s account.