---
kind: "section"
citation: "48 C.F.R. § 232.901"
title: "48"
number: "232.901"
heading: "Applicability."
url: "https://uscodex.org/cfr/48/232.901"
---

# §232.901. Applicability.

- (1) Except for FAR 32.908, FAR [subpart 32.9](/cfr/48/subpart32.9.md), Prompt Payment, does not apply when—
  - (i) **There is—**
    - (A) An emergency, as defined in the Disaster Relief Act of 1974;
    - (B) A contingency operation (see FAR 2.101(b)); or
    - (C) The release or threatened release of hazardous substances (as defined in [4 U.S.C. 9606](/usc/4/9606.md), [section 106](/cfr/48/106.md)); and
  - (ii) The head of the contracting activity has made a determination, after consultation with the cognizant comptroller, that conditions exist that limit normal business operations; and
  - (iii) Payments will be made in the operational area or made contingent upon receiving supporting documentation (i.e., contract, invoice, and receiving report) from the operational area.
- (2) Criteria limiting normal business operations during emergencies and contingency operations that restrict the use of FAR 32.9 may include such conditions as—
  - (i) Support infrastructure, hardware, communications capabilities, and bandwidth are not consistently available such that normal business operations can be carried out;
  - (ii) Support resources, facilities, and banking needs are not consistently available for use as necessary in carrying out normal business operations;
  - (iii) Military mission priorities override the availability of appropriately skilled personnel in support of back-office operations;
  - (iv) Mobility impairments and security concerns restrict free movement of personnel and documents necessary for timely processing;
  - (v) Foreign vendors are not familiar with or do not understand DoD contract requirements (i.e., proper invoice, receiving documentation, and contracting terms); or
  - (vi) Documents received in support of payment requests and shipments require language translations that cannot be performed and documented within normal business processing times.
- (3) **Subsequent Determinations.** The head of the contracting activity shall make subsequent determinations, after consultation with the cognizant comptroller, as the operational area evolves into either a more stable or less stable environment.
  - (i) If the head of the contracting activity determines that the operational area has evolved into a more stable environment, the contracting officer shall notify, by issuance of a contract modification, each contractor performing in the operational area under review. The modification deactivates clause 252.232-7011 and activates the applicable FAR Prompt Payment clause in the contract.
  - (ii) If after deactivation of clause 252.232-7011, the head of the contracting activity subsequently determines that the operational area has evolved into a less stable environment, the head of the contracting activity will make a determination that conditions exist that limit normal business operations. The contracting officer will then reactivate clause 252.232-7011 by issuance of a contract modification.

## Notes

### Amendments

[75 FR 40713, July 13, 2010, as amended at 76 FR 11373, Mar. 2, 2011]

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36409, July 31, 1991, unless otherwise noted.

### Amendments

[75 FR 40713, July 13, 2010, as amended at 76 FR 11373, Mar. 2, 2011]