32.502-2 Contract finance office clearance.

The contracting officer shall obtain the approval of the contract finance office or other offices designated under agency procedures before taking any of the following actions:

(a)  Providing a progress payment rate higher than the customary rate (see 32.501-1).

(b)  Deviating from the progress payments terms prescribed in this part.

(c)  Providing progress payments to a contractor-

(1)  Whose financial condition is in doubt;

(2)  Who has had an advance payment request or loan guarantee denied for financial reasons (or approved but withdrawn or lapsed) within the previous 12 months; or

(3)  Who is named in the consolidated list of contractors indebted to the United States (known commonly as the "Holdup List").