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
- FAR 52.232-12 Advance Payments
- FAR Subpart 9.3 First Article Testing and Approval
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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