FAR 32.501-2 Unusual progress payments
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 32.501-2
- Type
- Subsection
- 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 subsection.
Text
(a) The contracting officer may provide unusual progress payments only if-
(1) The contract necessitates predelivery expenditures that are large in relation to contract price and in relation to the contractor’s working capital and credit;
(2) The contractor fully documents an actual need to supplement any private financing available, including guaranteed loans; and
(3) The contractor’s request is approved by the head of the contracting activity or a designee. In addition, see 32.502-2.
(b) The excess of the unusual progress payment rate approved over the customary progress payment rate should be the lowest amount possible under the circumstances.
(c) Progress payments will not be considered unusual merely because they are on letter contracts or the definitive contracts that supersede letter contracts.
Sections cited
- FAR 32.502-2 Contract finance office clearance
Quick answers
What is FAR 32.501-2?
FAR 32.501-2 is a subsection of the Federal Acquisition Regulation, titled "Unusual progress payments".
Are changes to FAR 32.501-2 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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