32.200
Scope of subpart
FAR 32.200 defines the scope for commercial financing policies and procedures, ensuring that only commercial item purchases under FAR Part 12 are governed by these specialized rules.
Overview
- FAR 32.200 establishes the scope for Subpart 32.2, outlining the policies and procedures that apply to commercial financing arrangements for commercial product and service purchases under FAR Part 12. This section clarifies that the subpart is specifically focused on the unique financing needs and mechanisms available for commercial item acquisitions, distinguishing them from non-commercial procurement financing rules.
Key Rules
- Applicability to Commercial Purchases
- The subpart applies only to commercial product and service purchases conducted under FAR Part 12.
- Commercial Financing Arrangements
- The subpart covers the policies and procedures for structuring, approving, and managing commercial financing arrangements in these acquisitions.
Responsibilities
- Contracting Officers: Must follow the policies and procedures in this subpart when considering or implementing commercial financing for Part 12 acquisitions.
- Contractors: Should understand the financing options and requirements available under this subpart when bidding on or performing commercial item contracts.
- Agencies: Ensure oversight and compliance with the specific financing provisions for commercial purchases.
Practical Implications
- This section exists to clarify that commercial item acquisitions have distinct financing rules, which can impact payment terms, risk allocation, and cash flow for contractors.
- It helps contracting professionals quickly identify when specialized commercial financing policies apply, reducing confusion with non-commercial procurement rules.
- Common pitfalls include misapplying non-commercial financing rules to commercial contracts or overlooking available commercial financing options.