SUBPART 232.1--NON-COMMERCIAL ITEM PURCHASE
FINANCING
232.102 Description of contract
financing methods.
232.102-70 Provisional delivery
payments.
232.108 Financial consultation.
232.102 Description 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.
232.102-70 Provisional 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 be—
(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 not—
(1) Include profit;
(2) Exceed funds obligated for the undefinitized
contract action; or
(3) Influence the definitized contract price.
232.108 Financial consultation.
See 232.070 for offices to be
consulted regarding financial matters within DoD.