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subpart 232.4--advance payments for non-commercial items

(Revised December 19, 2006)



 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 $3,000.


232.409  Contracting officer action.


232.409-1  Recommendation for approval.

Follow the procedures at PGI 232.409-1 (Pop-up Window or PGI Viewer Mode) for preparation of the documents required by FAR 32.409-1(e) and (f).


232.410  Findings, determination, and authorization.

If an advance payment procedure is used without a special bank account, follow the procedures at PGI 232.410 (Pop-up Window or PGI Viewer Mode).


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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