Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.32.005 Consideration for contract financing

(a) Requirement. When a contract financing clause is included at the inception of a contract, there shall be no separate consideration for the contract financing clause. The value of the contract financing to the contractor is expected to be reflected in either

(b) Amount of new consideration. The contractor may provide new consideration by monetary or nonmonetary means, provided the value is adequate. The fair and reasonable consideration should approximate the amount by which the price would have been less had the contract financing terms been contained in the initial contract. In the absence of definite information on this point, the contracting officer should apply the following criteria in evaluating whether the proposed new consideration is adequate:

(c) Interest. Except as provided in subpart 32.4, Advance Payments for Non–Commercial Items, the contract shall not provide for any other type of specific charges, such as interest, for contract financing.