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(Revised March 18, 2022)

(See DFARS 232.10, DFARS/PGI view)

PGI 232.1001  Policy.

      (a)  Contracting officer action. 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 & Finance section under the Performance Based Payments – Guide Book & Analysis Tool tab: