32.204 Procedures for contracting officer-specified commercial contract financing
Source: FAR 32.204 on acquisition.gov
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.
The financing terms shall be included in the solicitation. Contract financing shall not be a factor in the evaluation of resulting proposals, and proposals of alternative financing terms shall not be accepted (but see 14.208 and 15.206 concerning amendments of solicitations). However, an offer stating that the contracting officer-specified contract financing terms will not be used by the offeror does not alter the evaluation of the offer, nor does it render the offer nonresponsive or otherwise unacceptable. In the event of award to an offeror who declined the proposed contract financing, the contract financing provisions shall not be included in the resulting contract. Contract financing shall not be a basis for adjusting offerors’ proposed prices, because the effect of contract financing is reflected in each offeror’s proposed prices.