32.404
Exclusions
FAR 32.404 exempts specific types of advance payments from general requirements, allowing agencies to set their own procedures for these transactions.
Overview
FAR 32.404 outlines specific exclusions from the general rules governing advance payments for other than commercial acquisitions. This section lists types of transactions where the subpart's requirements do not apply, such as advance payments for rent, tuition, insurance premiums, certain foreign purchases, and other categories authorized by law or agency procedures. It also allows agencies to issue their own instructions for handling these excluded advance payments, provided they are authorized by relevant statutes.
Key Rules
- Exclusions from Subpart 32.4
- Advance payments for certain items (e.g., rent, tuition, insurance, specific foreign purchases, utilities, subscriptions, and others) are not subject to the requirements of this subpart.
- Foreign Purchases Exception
- Purchases of supplies or services in foreign countries are excluded if the price does not exceed $15,000 and advance payment is required by local law or regulation.
- Agency Authority
- Agencies may develop their own procedures for excluded advance payments, as long as they are authorized by statute.
Responsibilities
- Contracting Officers: Must recognize when advance payment exclusions apply and follow agency-specific instructions for these transactions.
- Contractors: Should be aware of which advance payments are excluded and comply with any agency-specific requirements.
- Agencies: May issue instructions for handling excluded advance payments under statutory authority.
Practical Implications
- This section clarifies when the general advance payment rules do not apply, reducing administrative burden for certain transactions.
- Contractors and contracting officers must be vigilant in identifying excluded transactions and following any agency-specific guidance.
- Common pitfalls include misapplying subpart requirements to excluded transactions or overlooking agency-specific procedures.