FAR 32.110 Payment of subcontractors under cost-reimbursement prime contracts
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 32.110
- Type
- Section
- Last amended
- 86 FR 61017 Effective Dec 6, 2021
- 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
If the contractor makes financing payments to a subcontractor under a cost-reimbursement prime contract, the contracting officer should accept the financing payments as reimbursable costs of the prime contract only under the following conditions:
(a) The payments are made under the criteria in subpart 32.5 for customary progress payments based on costs, 32.202-1 for commercial product or commercial service purchase financing, or 32.1003 for performance-based payments, as applicable.
(b) If customary progress payments are made, the payments do not exceed the progress payment rate in 32.501-1, unless unusual progress payments to the subcontractor have been approved in accordance with 32.501-2.
(c) If customary progress payments are made, the subcontractor complies with the liquidation principles of 32.503-8, 32.503-9, and 32.503-10.
(d) If performance-based payments are made, the subcontractor complies with the liquidation principles of 32.1004(d).
(e) The subcontract contains financing payments terms as prescribed in this part.
Federal Register history
Sections cited
- FAR Subpart 32.5 Progress Payments Based on Costs
- FAR 32.202-1 Policy
- FAR 32.1003 Criteria for use
- FAR 32.501-1 Customary progress payment rates
- FAR 32.501-2 Unusual progress payments
- FAR 32.503-8 Liquidation rates-ordinary method
- FAR 32.503-9 Liquidation rates-alternate method
- FAR 32.503-10 Establishing alternate liquidation rates
- FAR 32.1004(d) Procedures
Quick answers
What is FAR 32.110?
FAR 32.110 is a section of the Federal Acquisition Regulation, titled "Payment of subcontractors under cost-reimbursement prime contracts".
When was FAR 32.110 last changed?
The most recent final rule on record is "Federal Acquisition Regulation: Revision of Definition of “Commercial Item”" (86 FR 61017), published Nov 4, 2021 and effective Dec 6, 2021.
Are changes to FAR 32.110 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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