232.072-1  Required financial reviews.

The contracting officer shall perform a financial review when the contracting officer does not otherwise have sufficient information to make a positive determination of financial responsibility. In addition, the contracting officer shall consider performing a financial review-

(a)  Prior to award of a contract, when-

(1)  The contractor is on a list requiring preaward clearance or other special clearance before award;

(2)  The contractor is listed on the Consolidated List of Contractors Indebted to the Government (Hold-Up List), or is otherwise known to be indebted to the Government;

(3)  The contractor may receive Government assets such as contract financing payments or Government property;

(4)  The contractor is experiencing performance difficulties on other work; or

(5)  The contractor is a new company or a new supplier of the item.

(b)  At periodic intervals after award of a contract, when-

(1)  Any of the conditions in paragraphs (a)(2) through (a)(5) of this subsection are applicable; or

(2)  There is any other reason to question the contractor's ability to finance performance and completion of the contract.