32.404 Exclusions
Source: FAR 32.404 on acquisition.gov
FAR 32.404 exempts specific transaction types from standard advance payment rules, allowing agencies to issue their own procedures for these cases.
Overview
FAR 32.404 outlines specific exclusions from the general rules governing advance payments for other than commercial acquisitions. It lists categories of transactions—such as rent, tuition, insurance premiums, certain foreign purchases, and others—that are not subject to the requirements of this subpart. Additionally, it allows agencies to issue their own instructions for handling advance payments in these excluded categories, provided they are authorized by relevant statutes.
Key Rules
- Exclusion of Certain Transactions
- Advance payments for rent, tuition, insurance premiums, foreign investigations, public utility connections, subscriptions, certain foreign purchases (under $20,000 and required by local law), customs/narcotics enforcement, and other agency-specified transactions are excluded from this subpart.
- Agency Authority
- Agencies may develop their own procedures for these excluded advance payment types, as long as they are authorized by statute.
Responsibilities
- Contracting Officers: Must recognize and apply these exclusions, ensuring that excluded transactions are not processed under the general advance payment rules of this subpart.
- Contractors: Should be aware if their contract falls under an excluded category and follow any agency-specific instructions.
- Agencies: May issue additional guidance or procedures for excluded transactions, as permitted by law.
Practical Implications
- This section clarifies when the standard advance payment rules do not apply, reducing administrative burden for certain transactions.
- Contractors and contracting officers must carefully identify if a transaction is excluded to avoid unnecessary compliance steps.
- Agencies have flexibility to tailor procedures for excluded items, but must ensure statutory authority for any such instructions.
(a) This subpart does not apply to advance payments authorized by law for-
(1) Rent;
(2) Tuition;
(3) Insurance premiums;
(4) Expenses of investigations in foreign countries;
(5) Extension or connection of public utilities for Government buildings or installations;
(6) Subscriptions to publications;
(7) Purchases of supplies or services in foreign countries, if-
(i) The purchase price does not exceed $20,000 (or equivalent amount of the applicable foreign currency); and
(ii) The advance payment is required by the laws or government regulations of the foreign country concerned;
(8) Enforcement of the customs or narcotics laws; or
(9) Other types of transactions excluded by agency procedures under statutory authority.
(b) Agencies may issue their own instructions to deal with advance payment items in paragraph (a) of this section authorized under statutes relevant to their agencies.