The contracting officer must consider the following order of preference when a contractor requests contract financing, unless an exception would be in the Government's best interest in a specific case:

1. (a) Private financing without Government guarantee. It is not intended, however, that the contracting officer require the contractor to obtain private financing—

   1. (1) At unreasonable terms; or
   2. (2) From other agencies.
2. (b) Customary contract financing other than loan guarantees and certain advance payments (see 32.113).
3. (c) Loan guarantees.
4. (d) Unusual contract financing (see 32.114).
5. (e) Advance payments (see exceptions in 32.402(b)).

[48 FR 42328, Sept. 19, 1983, as amended at 60 FR 49711, Sept. 26, 1995; 65 FR 16279, Mar. 27, 2000]