FAR 32.104 outlines specific criteria under which contract financing, such as performance-based payments or customary progress payments, may be offered. If the procurement involves commercial items or services that are not conducive to performance-based payments, or if the agency determines that the contract type does not support financing due to the nature of the work or risk involved, then offering such financing would be prohibited. Additionally, if the contractor does not have a satisfactory performance record or if the financing would not be in the government's interest, those factors could also preclude offering contract financing.
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