Overview
FAR 32.200 defines the scope of Subpart 32.2, establishing the policies and procedures for financing commercial products and services. It limits the application of these specific rules to acquisitions conducted under the commercial procedures of FAR Part 12.
Key Rules
- Applicability: Applies specifically to commercial financing arrangements rather than traditional government-unique financing.
- Regulatory Linkage: Operates in conjunction with FAR Part 12 (Acquisition of Commercial Products and Commercial Services).
- Policy Foundation: Sets the framework for how the government provides financial assistance to contractors when purchasing items available in the commercial marketplace.
Practical Implications
- This subpart allows Contracting Officers to utilize market-based financing terms—such as advance or interim payments—that align with standard commercial practices rather than restrictive cost-based government financing.
- Contractors selling commercial products or services can negotiate payment terms that more closely resemble their private-sector transactions, provided they meet the specific criteria of FAR Part 12.