(c) If statutory requirements and standards for advance payment determinations are met, the contracting officer shall generally recommend that the agency authorize advance payments.
(1) The statutory requirements are that—
(i) The contractor gives adequate security;
(ii) The advance payments will not exceed the unpaid contract price (see 32.410(b), paragraph (a)(2)); and
(iii) The agency head or designee determines, based on written findings, that the advance payment—
(A) Is in the public interest (under 32.401(a) or (b)); or
(B) Facilitates the national defense (under 32.401(c)).
(2) The standards for advance payment determinations are that—
(i) The advance payments will not exceed the contractor’s interim cash needs based on—
(A) Analysis of the cash flow required for contract performance;
(B) Consideration of the reimbursement or other payment cycle; and
(C) To the extent possible, employment of the contractor’s own working capital;
(ii) The advance payments are necessary to supplement other funds or credit available to a contractor;
(iii) The recipient is otherwise qualified as a responsible contractor;
(iv) The Government will benefit from performance prospects or there are other practical advantages; and
(v) The case fits one or more of the categories described in 32.403.