Performance Based Payments (PBP) Analysis Tool; DFARS Part 232-Contract Financing

Performance-Based Payments

DFARS Case 2011-D045

Draft Proposed Rule-PGI

PART 232-CONTRACT FINANCING

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[PGI 232.10-- PERFORMANCE-BASED PAYMENTS

PGI 232.1001 – Policy.

1. Performance-based payments are not practical for use on all fixed-price contracts and require considerable effort between the contractor and Government to identify the appropriate performance-based payment events and establish the proper completion criteria for those events. Additionally, FAR 32.1003 prohibits contracts from having both progress payments and performance-based payment financing on a contract at the same time. Additional information and instruction on performance-based payments are provided in the DoD Performance-Based Payments Guide on the DPAP website in the Cost, Pricing, and Finance section on the performance-based payments analysis tool:

http://www.acq.osd.mil/dpap/cpf/Performance_based_payments.html.]

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