FAR 52.232-29 - Terms of Financing of Purchases of Commercial Items

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Prescribed in 32.206(b)(2)
Effective Date:	1 February 2002
Clause or Provision:	Clause
Provision or Clause Number:	52.232-29 - Terms of Financing of Purchases of Commercial Items
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Fixed Price, Supply; Fixed Price, Service; Commercial Items
Optional:	Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Time & Material/Labor Hour; Cost Reimbursement, Construction; Cost Reimbursement, Supply; Cost Reimbursement, Service
Subject:	Invoices and Payments
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (b) Each contract financing clause shall include: (1) A description of the— (i) Computation of the financing payment amounts (see paragraph (c) of this section); (ii) Specific conditions of contractor entitlement to those financing payments (see paragraph (c) of this section); (iii) Liquidation of those financing payments by delivery payments (see paragraph (e) of this section); (iv) Security the contractor will provide for financing payments and any terms or conditions specifically applicable thereto (see 32.202-4); and (v) Frequency, form, and any additional content of the contractor’s request for financing payment (in addition to the requirements of the clause at 52.232-29, Terms for Financing of Purchases of Commercial Items; and (2) Unless agency regulations authorize alterations, the unaltered text of the clause at 52.232-29, Terms for Financing of Purchases of Commercial Items.
Clause Overview:	Clause (a) Contractor Entitlement to Financing Payments The Contractor may request, and the Government shall pay, a contract financing payment as specified elsewhere in this contract when: the payment requested is properly due in accordance with this contract; the supplies deliverable or services due under the contract will be delivered or performed in accordance with the contract; and there has been no impairment or diminution of the Government’s security under this contract. (b) Special Terms Regarding Termination for Cause If this contract is terminated for cause, the Contractor shall, on demand, repay to the Government the amount of unliquidated contract financing payments. The Government shall be liable for no payment except as provided by the Termination for Cause paragraph of the clause at 52.212-4, Contract Terms and Conditions—Commercial Items. (c) Security for Government Financing In the event the Contractor fails to provide adequate security, as required in this contract, no financing payment shall be made under this contract. Upon receipt of adequate security, financing payments shall be made, including all previous payments to which the Contractor is entitled, in accordance with the terms of the provisions for contract financing. If at any time the Contracting Officer determines that the security provided by the Contractor is insufficient, the Contractor shall promptly provide such additional security as the Contracting Officer determines necessary. In the event the Contractor fails to provide such additional security, the Contracting Officer may collect or liquidate such security that has been provided and suspend further payments to the Contractor; and the Contractor shall repay to the Government the amount of unliquidated financing payments as the Contracting Officer at his sole discretion deems repayable. (d) Reservation of Rights (1) No payment or other action by the Government under this clause shall— (i) Excuse the Contractor from performance of obligations under this contract; or (ii) Constitute a waiver of any of the rights or remedies of the parties under the contract. (2) The Government’s rights and remedies under this clause— (i) Shall not be exclusive, but rather shall be in addition to any other rights and remedies provided by law or this contract; and (ii) Shall not be affected by delayed, partial, or omitted exercise of any right, remedy, power, or privilege, nor shall such exercise or any single exercise preclude or impair any further exercise under this clause or the exercise of any other right, power, or privilege of the Government. (e) Content of Contractor's Request for Financing Payment The Contractor’s request for financing payment shall contain the following: (1) The name and address of the Contractor; (2) The date of the request for financing payment; (3) The contract number and/or other identifier of the contract or order under which the request is made; and (4) An appropriately itemized and totaled statement of the financing payments requested and such other information as is necessary for computation of the payment, prepared in accordance with the direction of the Contracting Officer. (f) Limitation on frequency of Financing Payments Contractor financing payments shall be provided no more frequently than monthly. (g) Dates for Payment A payment under this clause is a contract financing payment and not subject to the interest penalty provisions of the Prompt Payment Act. The designated payment office will pay approved payment requests within 30 days of submittal of a proper request for payment. (h) Conflict Between Terms of Offeror and Clause In the event of any conflict between the terms proposed by the offeror in response to an invitation to propose financing terms (52.232-31) and the terms in this clause, the terms of this clause shall govern.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	No
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.