subpart
232.4--advance payments
232.404 Exclusions.
232.409 Contracting officer
action.
232.409-1 Recommendation for
approval.
232.410 Findings,
determination, and authorization.
232.412 Contract clause.
232.412-70 Additional clauses.
232.470 Advance payment pool.
232.404 Exclusions.
(a)(9) The requirements
of FAR Subpart 32.4 do not apply to advertisements in high school and college
publications for military recruitment efforts under 10 U.S.C. 503 when the
contract cost does not exceed $500.
232.409 Contracting officer
action.
232.409-1 Recommendation for
approval.
To ensure uniform application
of this subpart (see FAR 32.402(e)(1)), the departmental/agency contract
financing office shall prepare the documents required by FAR 32.409-1(e) and
(f).
232.410 Findings,
determination, and authorization.
(b) If an advance
payment procedure is used without a special bank account, replace paragraph
(a)(4) of the Findings, Determination, and Authorization for Advance Payments
at FAR 32.410 with:
“(4) The
proposed advance payment clause contains appropriate provisions as security for
advance payments. These provisions
include a requirement that the outstanding advance payments will be liquidated
from cost reimbursements as they become due the contractor. This security is considered adequate to
protect the interest of the Government.”
232.412 Contract clause.
232.412-70 Additional clauses.
(a) Use the clause at
252.232-7000, Advance Payment Pool, in any contract that will be subject to the
terms of an advance payment pool agreement with a nonprofit organization or
educational institution. Normally, use
the clause in all cost reimbursement type contracts with the organization or
institution.
(b) Use the clause at
252.232-7001, Disposition of Payments, in contracts when payments under the
contract are to be made by a disbursing office not designated in the advance
payment pool agreement.
(c) Use the clause at
252.232-7005, Reimbursement of Subcontractor Advance Payments--DoD Pilot
Mentor-Protege Program, when advance payments will be provided by the
contractor to a subcontractor pursuant to an approved mentor-protege agreement
(See Subpart 219.71).
232.470 Advance payment pool.
(a) An advance payment
pool agreement—
(1) Is a means of financing the performance of
more than one contract held by a single contractor;
(2) Is especially convenient for the financing
of cost-type contracts with nonprofit educational or research institutions for
experimental or research and development work when several contracts require
financing by advance payments. When
appropriate, pooled advance payments may also be used to finance other types of
contracts held by a single contractor; and
(3) May be established—
(i) Without regard to the number of
appropriations involved;
(ii)
To finance contracts for one or more department(s) or contracting
activity(ies); or
(iii) In addition to any other advance payment pool agreement at a single contractor location when it is more convenient or otherwise preferable to have more than one agreement.