---
kind: "section"
citation: "48 C.F.R. § 32.501-2"
title: "48"
number: "32.501-2"
heading: "Unusual progress payments."
url: "https://uscodex.org/cfr/48/32.501-2"
---

# §32.501-2. Unusual progress payments.

- (a) The contracting officer may provide unusual progress payments only if—
  - (1) The contract necessitates predelivery expenditures that are large in relation to contract price and in relation to the contractor's working capital and credit;
  - (2) The contractor fully documents an actual need to supplement any private financing available, including guaranteed loans; and
  - (3) **The contractor's request is approved by the head of the contracting activity or a designee.** In addition, see 32.502-2.
- (b) The excess of the unusual progress payment rate approved over the customary progress payment rate should be the lowest amount possible under the circumstances.
- (c) Progress payments will not be considered unusual merely because they are on letter contracts or the definitive contracts that supersede letter contracts.

## Notes

### 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.