48 CFR § 32.110 - 32.110 Payment of subcontractors under cost-reimbursement prime contracts.

---
identifier: "/us/cfr/t48/s32.110"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 32.110 - 32.110   Payment of subcontractors under cost-reimbursement prime contracts."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "32.110"
section_name: "32.110   Payment of subcontractors under cost-reimbursement prime contracts."
chapter_number: 1
chapter_name: "FEDERAL ACQUISITION REGULATION"
subchapter_number: "E"
subchapter_name: "GENERAL CONTRACTING REQUIREMENTS"
part_number: "32"
part_name: "CONTRACT FINANCING"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113."
regulatory_source: "48 FR 42328, Sept. 19, 1983, unless otherwise noted."
cfr_part: "32"
---


# 32.110 32.110   Payment of subcontractors under cost-reimbursement prime contracts.

If the contractor makes financing payments to a subcontractor under a cost-reimbursement prime contract, the contracting officer should accept the financing payments as reimbursable costs of the prime contract only under the following conditions:

(a) The payments are made under the criteria in subpart 32.5 for customary progress payments based on costs, 32.202-1 for commercial product or commercial service purchase financing, or 32.1003 for performance-based payments, as applicable.

(b) If customary progress payments are made, the payments do not exceed the progress payment rate in 32.501-1, unless unusual progress payments to the subcontractor have been approved in accordance with 32.501-2.

(c) If customary progress payments are made, the subcontractor complies with the liquidation principles of 32.503-8, 32.503-9, and 32.503-10.

(d) If performance-based payments are made, the subcontractor complies with the liquidation principles of 32.1004(d).

(e) The subcontract contains financing payments terms as prescribed in this part.

[65 FR 16279, Mar. 27, 2000, as amended at 86 FR 61029, Nov. 4, 2021]