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 232.102 Description of contract financing methods.
 232.102-70 Provisional delivery payments.
 232.108 Financial consultation.

232.102Description of contract financing methods.


††††† (e)(2)Progress payments based on percentage or stage of completion are authorized only for contracts for construction (as defined in FAR 36.102), shipbuilding, and ship conversion, alteration, or repair.However, percentage or stage of completion methods of measuring contractor performance may be used for performance-based payments in accordance with FAR Subpart 32.10.


232.102-70Provisional delivery payments.


††††† (a)The contracting officer may establish provisional delivery payments to pay contractors for the costs of supplies and services delivered to and accepted by the Government under the following contract actions, if undefinitized:


††††† ††††††† (1)Letter contracts contemplating a fixed-price contract.


††††† ††††††† (2)Orders under basic ordering agreements.


††††† ††††††† (3)Spares provisioning documents annexed to contracts.


††††† ††††††† (4)Unpriced equitable adjustments on fixed-price contracts.


††††† ††††††† (5)Orders under indefinite-delivery contracts.


††††† (b)Provisional delivery payments shall beó


††††† ††††††† (1)Used sparingly;


††††† ††††††† (2)Priced conservatively; and


††††† ††††††† (3)Reduced by liquidating previous progress payments in accordance with the Progress Payments clause.


††††† (c)Provisional delivery payments shall notó


††††† ††††††† (1)Include profit;


††††† ††††††† (2)Exceed funds obligated for the undefinitized contract action; or


††††† ††††††† (3)Influence the definitized contract price.


232.108Financial consultation.

See 232.070 for offices to be consulted regarding financial matters within DoD.




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