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subpart 232.4--advance payments



 232.404 Exclusions.
 232.409 Contracting officer action.
 232.409-1 Recommendation for approval.
 232.410 Findings, determination, and authorization.
 232.412 Contract clause.
 232.412-70 Additional clauses.
 232.470 Advance payment pool.

232.404  Exclusions.


      (a)(9)  The requirements of FAR Subpart 32.4 do not apply to advertisements in high school and college publications for military recruitment efforts under 10 U.S.C. 503 when the contract cost does not exceed $500.


232.409  Contracting officer action.


232.409-1  Recommendation for approval.

To ensure uniform application of this subpart (see FAR 32.402(e)(1)), the departmental/agency contract financing office shall prepare the documents required by FAR 32.409-1(e) and (f).


232.410  Findings, determination, and authorization.


      (b)  If an advance payment procedure is used without a special bank account, replace paragraph (a)(4) of the Findings, Determination, and Authorization for Advance Payments at FAR 32.410 with:


              “(4)  The proposed advance payment clause contains appropriate provisions as security for advance payments.  These provisions include a requirement that the outstanding advance payments will be liquidated from cost reimbursements as they become due the contractor.  This security is considered adequate to protect the interest of the Government.”


232.412  Contract clause.


232.412-70  Additional clauses.


      (a)  Use the clause at 252.232-7000, Advance Payment Pool, in any contract that will be subject to the terms of an advance payment pool agreement with a nonprofit organization or educational institution.  Normally, use the clause in all cost reimbursement type contracts with the organization or institution.


      (b)  Use the clause at 252.232-7001, Disposition of Payments, in contracts when payments under the contract are to be made by a disbursing office not designated in the advance payment pool agreement.


      (c)  Use the clause at 252.232-7005, Reimbursement of Subcontractor Advance Payments--DoD Pilot Mentor-Protege Program, when advance payments will be provided by the contractor to a subcontractor pursuant to an approved mentor-protege agreement (See Subpart 219.71).


232.470  Advance payment pool.


      (a)  An advance payment pool agreement—


              (1)  Is a means of financing the performance of more than one contract held by a single contractor;
              (2)  Is especially convenient for the financing of cost-type contracts with nonprofit educational or research institutions for experimental or research and development work when several contracts require financing by advance payments.  When appropriate, pooled advance payments may also be used to finance other types of contracts held by a single contractor; and


              (3)  May be established—


                    (i)  Without regard to the number of appropriations involved;


                    (ii)  To finance contracts for one or more department(s) or contracting activity(ies); or


                    (iii)  In addition to any other advance payment pool agreement at a single contractor location when it is more convenient or otherwise preferable to have more than one agreement.




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