FAR 32.1001 Policy
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 32.1001
- Type
- Section
- Last amended
- 72 FR 73219 Effective Jan 25, 2008
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this section.
Text
(a) Performance-based payments are the preferred Government financing method when the contracting officer finds them practical, and the contractor agrees to their use.
(b) Performance-based payments are contract financing payments that are not payment for accepted items.
(c) Performance-based payments are fully recoverable, in the same manner as progress payments, in the event of default.
(d) Performance-based payments are contract financing payments and, therefore, are not subject to the interest-penalty provisions of prompt payment (see subpart 32.9). These payments shall be made in accordance with agency policy.
(e) Performance-based payments shall not be used for-
(1) Payments under cost-reimbursement line items;
(2) Contracts for architect-engineer services or construction, or for shipbuilding or ship conversion, alteration, or repair, when the contracts provide for progress payments based upon a percentage or stage of completion; or
(3) Contracts awarded through sealed bid procedures.
Federal Register history
Sections cited
- FAR Subpart 32.9 Prompt Payment
Quick answers
What is FAR 32.1001?
FAR 32.1001 is a section of the Federal Acquisition Regulation, titled "Policy".
When was FAR 32.1001 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; FAR Case 2005-016, Performance-Based Payments" (72 FR 73219), published Dec 26, 2007 and effective Jan 25, 2008.
Are changes to FAR 32.1001 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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