---
kind: "section"
citation: "48 C.F.R. § 32.110"
title: "48"
number: "32.110"
heading: "Payment of subcontractors under cost-reimbursement prime contracts."
url: "https://uscodex.org/cfr/48/32.110"
---

# §32.110. Payment of subcontractors under cost-reimbursement prime contracts.


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:

- (a) The payments are made under the criteria in [subpart 32.5](/cfr/48/subpart32.5.md) 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.
- (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.
- (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.
- (d) If performance-based payments are made, the subcontractor complies with the liquidation principles of 32.1004(d).
- (e) **The subcontract contains financing payments terms as prescribed in this part.**

## Notes

### 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]