32.1005 Solicitation provision and contract clause
Source: FAR 32.1005 on acquisition.gov
FAR 32.1005 mandates the inclusion of specific clauses and provisions in solicitations and contracts involving performance-based payments to ensure clear terms and compliance.
Overview
FAR 32.1005 prescribes the use of specific solicitation provisions and contract clauses related to performance-based payments in federal contracts. It directs contracting officers to include the clause at 52.232-32 in solicitations and contracts that provide for performance-based payments, specifically in fixed-price contracts. Additionally, it requires the inclusion of the solicitation provision at 52.232-28 in negotiated solicitations where offerors are invited to propose performance-based payments, and mandates the use of Alternate I of this provision in competitive negotiated solicitations if the Government plans to adjust proposed prices for evaluation purposes. These requirements ensure that the terms and conditions for performance-based payments are clearly established and communicated to offerors and contractors.
(a) Insert the clause at 52.232-32, Performance-Based Payments, in-
(1) Solicitations that may result in contracts providing for performance-based payments; and
(2) Fixed-price contracts under which the Government will provide performance-based payments.
(b)
(1) Insert the solicitation provision at 52.232-28, invitation to Propose Performance-Based Payments, in negotiated solicitations that invite offerors to propose performance-based payments.
(2) Use the provision with its Alternate I in competitive negotiated solicitations if the Government intends to adjust proposed prices for proposal evaluation purposes (see 32.1004(e)).