StacksVerified U.S. regulatory reference

48 CFR §32.110

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
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:
  1. (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.
  2. (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.
  3. (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.
  4. (d)If performance-based payments are made, the subcontractor complies with the liquidation principles of 32.1004(d).
  5. (e)The subcontract contains financing payments terms as prescribed in this part.