32.002 Applicability of subparts
Source: FAR 32.002 on acquisition.gov
FAR 32.002 ensures contractors and contracting officers apply the correct contract financing rules by specifying which subparts of Part 32 apply to commercial and non-commercial purchases.
Overview
FAR 32.002 outlines which sections and subparts of Part 32 (Contract Financing) apply to various types of government purchases. It clarifies the applicability of specific financing rules based on whether the acquisition is for commercial products/services under FAR Part 12 or for other types of purchases. This section is essential for determining which contract financing provisions must be followed for a given procurement, ensuring both contracting officers and contractors apply the correct rules for their contract type.
Key Rules
- General Applicability
- Sections 32.000–32.009 and subparts 32.3, 32.6, 32.7, 32.8, 32.9, and 32.11 apply to all purchases subject to Part 32.
- Commercial Purchases
- Subpart 32.2 (Commercial Product and Commercial Service Purchase Financing) applies only to purchases under FAR Part 12 (commercial items).
- Non-Commercial Purchases
- Subparts 32.1, 32.4, 32.5, and 32.10 apply only to purchases made under authorities other than Part 12 (i.e., non-commercial acquisitions).
Responsibilities
- Contracting Officers: Must determine the correct subparts to apply based on the nature of the acquisition (commercial vs. non-commercial) and ensure contract clauses reflect the appropriate financing provisions.
- Contractors: Should understand which financing rules and requirements apply to their contracts based on the contract type and ensure compliance with relevant provisions.
- Agencies: Must provide oversight to ensure proper application of contract financing rules and avoid misapplication of commercial/non-commercial financing provisions.
Practical Implications
- This section helps prevent confusion and misapplication of financing rules by clearly delineating which subparts apply to which types of purchases.
- Contractors and contracting officers must be vigilant in identifying the correct authority (Part 12 or otherwise) to ensure compliance with the right financing requirements.
- Common pitfalls include applying commercial financing rules to non-commercial contracts or vice versa, which can lead to compliance issues or payment delays.
(a) The following sections and subparts of this part are applicable to all purchases subject to part 32:
(1) Sections 32.000 through 32.009.
(2) subpart 32.3, Loan Guarantees for Defense Production.
(3) subpart 32.6, Contract Debts.
(4) subpart 32.7, Contract Funding.
(5) subpart 32.8, Assignment of Claims.
(6) subpart 32.9, Prompt Payment.
(7) subpart 32.11, Electronic Funds Transfer.
(b) subpart 32.2, Commercial Product and Commercial Service Purchase Financing, is applicable only to purchases of commercial products and commercial services under authority of part 12.
(c) The following subparts of this part are applicable to all purchases made under any authority other than part 12:
(1) subpart 32.1, Financing for Other Than a Commercial Purchase.
(2) subpart 32.4, Advance Payments for Other Than Commercial Acquisitions.
(3) subpart 32.5, Progress Payments Based on Costs.
(4) subpart 32.10, Performance-Based Payments.