Scope of subpart
FAR 32.100 ensures that contract financing and payment rules in Subpart 32.1 apply only to non-commercial purchases, requiring careful classification of contract type.
Overview
FAR 32.100 defines the scope of Subpart 32.1, clarifying that its policies and procedures apply to contract financing and payment for all government purchases except those involving commercial products or commercial services (which are governed by FAR Part 12). This section sets the boundaries for when the rules in Subpart 32.1 are relevant, ensuring that contracting professionals apply the correct financing and payment regulations based on the nature of the purchase.
Key Rules
- Applicability
- The subpart covers contract financing and payment for non-commercial purchases only.
- Exclusion of Commercial Items
- Purchases of commercial products or services follow different rules under FAR Part 12 and are not subject to this subpart.
Responsibilities
- Contracting Officers: Must determine whether a purchase is commercial or non-commercial to apply the correct financing and payment procedures.
- Contractors: Should understand which set of rules applies to their contract type to ensure compliance.
- Agencies: Must ensure proper classification and adherence to the appropriate FAR subpart or part.
Practical Implications
- This section exists to prevent confusion between the rules for commercial and non-commercial purchases.
- It impacts daily contracting by requiring accurate classification of purchases at the outset.
- A common pitfall is misapplying commercial item rules to non-commercial contracts or vice versa, leading to compliance issues.