Overview
This section prohibits contracting officers from penalizing a contractor or offeror for requiring contract financing, provided they otherwise meet the standards of a responsible contractor.
Key Rules
- Neutral Evaluation: The need for contract financing cannot be used as a "handicap," evaluation criterion, or a negative factor when determining a contractor's responsibility under FAR 9.104.
- Non-Disqualification: A contractor cannot be denied financing solely because they did not state a need for it prior to the contract award.
- Responsibility Prerequisite: The protection applies as long as the offeror meets the general standards for responsible prospective contractors.
Practical Implications
- This rule levels the playing field for small businesses or firms with limited cash flow, ensuring they are judged on their technical and price proposals rather than their immediate liquid capital.
- Government evaluators must remain objective regarding an offeror's financial structure, focusing on the ability to perform the work rather than the method of funding that performance.