32.204
Procedures for contracting officer-specified commercial contract financing
Contract financing terms must be included in solicitations but are not evaluated or negotiated, and declining them does not affect offeror eligibility or proposal evaluation.
Overview
FAR 32.204 outlines the procedures for including contracting officer-specified commercial contract financing terms in solicitations. The section clarifies that financing terms must be stated in the solicitation and that these terms are not to be considered in the evaluation of proposals. Offerors cannot propose alternative financing terms, and if an offeror declines the specified financing, this does not affect the evaluation or render the offer nonresponsive. If such an offeror is awarded the contract, the financing provisions are simply omitted from the final contract. The regulation also emphasizes that contract financing should not be used to adjust proposed prices, as any financial impact is already reflected in the offerors’ pricing.