Contract Financing Payment

“Contract financing payment” means an authorized Government disbursement of monies to a contractor prior to acceptance of supplies or services by the Government.

(1) Contract financing payments include—

• (i) Advance payments;
• (ii) Performance-based payments;
• (iii) Commercial advance and interim payments;
• (iv) Progress payments based on cost under the clause at 52.232-16, Progress Payments;
• (v) Progress payments based on a percentage or stage of completion (see 32.102(e)), except those made under the clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, or the clause at 52.232-10, Payments Under Fixed-Price Architect-Engineer Contracts; and
• (vi) Interim payments under a cost reimbursement contract, except for a cost reimbursement contract for services when Alternate I of the clause at 52.232-25, Prompt Payment, is used.

(2) Contract financing payments do not include—

• (i) Invoice payments;
• (ii) Payments for partial deliveries; or
• (iii) Lease and rental payments.