This is Session 12 of the Foundations of the FAR webinar series.

This session of the Foundations of the FAR program will cover Parts 31 and 32 of the Federal Acquisition Regulation. Presenter William Keating will discuss how cost principles and procedures are defined in the pricing of contracts, subcontracts and modifications. Also discussed will be the financing and payment matters of contracts, including areas such as non-commercial item purchase financing, claims, performance-based payments, and electronic funds transfer.

Part 31 Scope:
This part contains cost principles and procedures for:

• (a) The pricing of contracts, subcontracts, and modifications to contracts and subcontracts whenever cost analysis is performed (see 15.404-1(c)); and
• (b) The determination, negotiation, or allowance of costs when required by a contract clause.

Part 32 Scope:
This part prescribes policies and procedures for contract financing and other payment matters. This part addresses:

• (a) Payment methods, including partial payments and progress payments based on percentage or stage of completion;
• (b) Loan guarantees, advance payments, and progress payments based on costs;
• (c) Administration of debts to the government arising out of contracts;
• (d) Contract funding, including the use of contract clauses limiting costs or funds;
• (e) Assignment of claims to aid in private financing;
• (f) Selected payment clauses;
• (g) Financing of purchases of commercial items;
• (h) Performance-based payments; and
• (i) Electronic funds transfer payments.