§32.1001. Policy.
48 C.F.R. § 32.1001
Performance-based payments are the preferred Government financing method when the contracting officer finds them practical, and the contractor agrees to their use.
Performance-based payments are contract financing payments that are not payment for accepted items.
Performance-based payments are fully recoverable, in the same manner as progress payments, in the event of default.
Performance-based payments are contract financing payments and, therefore, are not subject to the interest-penalty provisions of prompt payment (see Subpart 32.9). These payments shall be made in accordance with agency policy.
Performance-based payments shall not be used for—
Payments under cost-reimbursement line items;
Contracts for architect-engineer services or construction, or for shipbuilding or ship conversion, alteration, or repair, when the contracts provide for progress payments based upon a percentage or stage of completion; or
Contracts awarded through sealed bid procedures.
Notes, amendments, and revision history
Amendments
[72 FR 73220, Dec. 26, 2007]
Source
Source: 60 FR 49715, Sept. 26, 1995, unless otherwise noted.
Authority
Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
Source
Source: 48 FR 42328, Sept. 19, 1983, unless otherwise noted.
Amendments
[72 FR 73220, Dec. 26, 2007]