Federal activity overview — Commercial Item Financing
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Commercial Item Financing Government Contracts & Federal Records
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Commercial item financing provides government contract financing for purchases of commercial products and services under FAR Part 12. Since commercial items use firm-fixed-price contracts, traditional progress payments are not available. Instead, the government may provide financing payments that do not exceed the lesser of the contractor's costs or the contract price, subject to commercial market research and risk assessment.
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Ask about Commercial Item FinancingModerate positive impact. Financing payments help bridge the gap between contract start and delivery, but amounts are limited to costs incurred. Payment terms should mirror commercial market practices, which commercial firms already manage in their cash flow planning.
Get notified when usage of Commercial Item Financing changes in contracts or guidance.
Bureauify. (2026). Commercial Item Financing — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/commercial-item-financing
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