My company is a subcontractor negotiating with a prime who has indicated that they have both 252.232-7012 and 52.232-32 in their prime contract. My company is offering a commercial item for which we are requesting milestone payments. The prime has agreed to provide performance based payments in the subcontract but are also asserting that we are required to report cost incurred to date to the prime just as they are required to report to the government per 252.232-7012. They are also asserting that 52.232-32 and 252.232-7012 are mandatory flow downs. I can find nothing to support either assertion. If they are correct in their assertion can someone please direct me to the proper citation?