§32.110. Payment of subcontractors under cost-reimbursement prime contracts.
48 C.F.R. § 32.110
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:
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.
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.
If customary progress payments are made, the subcontractor complies with the liquidation principles of 32.503-8, 32.503-9, and 32.503-10.
If performance-based payments are made, the subcontractor complies with the liquidation principles of 32.1004(d).
The subcontract contains financing payments terms as prescribed in this part.
Notes, amendments, and revision history
Amendments
[65 FR 16279, Mar. 27, 2000, as amended at 86 FR 61029, Nov. 4, 2021]
Authority
Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
Source
Source: 48 FR 42328, Sept. 19, 1983, unless otherwise noted.
Amendments
[65 FR 16279, Mar. 27, 2000, as amended at 86 FR 61029, Nov. 4, 2021]