FAR 32.501-5 Other protective terms

Subsection Federal Acquisition Regulation

Facts

Citation
FAR 32.501-5
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

If the contracting officer considers it necessary for protection of the Government’s interest, protective terms such as the following may be used in addition to the Progress Payments clause of the contract:

(a) Personal or corporate guarantees.

(b) Subordinations or standbys of indebtedness.

(c) Special bank accounts.

(d) Protective covenants of the kinds in paragraph (p) of the clause at 52.232-12, Advance Payments.

(e) A provision, included in the solicitation and resultant contract when first article testing is required (see subpart 9.3), limiting progress payments on first article work by a stated amount or percentage.

Sections cited

Quick answers

What is FAR 32.501-5?

FAR 32.501-5 is a subsection of the Federal Acquisition Regulation, titled "Other protective terms".

Are changes to FAR 32.501-5 proposed?

No proposed rule from the last 3 years is waiting on a final rule.

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