| Events | y/n |
| 1 |
Have you obtained a program master schedule to help develop events? |
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| 2 |
Are all events listed in the performance based payment schedule? |
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| 3 |
Do the events reflect meaningful steps in successfully performing the contract? |
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| 4 |
Are the scheduled dates appropriate for the event? |
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| 5 |
Have you considered the frequency of events, balancing valid contractor cash flow needs with the administrative cost of verifying event completion? |
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| 6 |
Has each event been classified as either severable or cumulative? |
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| 7 |
For cumulative events, have you identified which events or criteria are preconditions for successful completion? |
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| 8 |
If on a line item basis, has each event been tied to a specific line item? |
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| 9 |
Has DCMA (technical or ACO) been involved in developing the events? |
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| 10 |
Have you verified that prime contractor deliveries are not listed as PBP events?
(Note: it is ok for Subcontractor deliveries to the prime to trigger PBP events) |
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Completion Criteria |
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| 11 |
Do the completion criteria reflect completion of performance? |
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| 12 |
Are the completion criteria clear? |
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| 13 |
Is the language readily understood? (e.g. the meaning of terms such as "initiate" is defined) |
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| 14 |
Are items specifically defined? (e.g. "critical parts" refers to a defined list of parts) |
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| 15 |
Do the criteria identify who will conduct the verification and is this the appropriate organization/position? |
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| 16 |
Has DCMA been involved in the development of the completion criteria? |
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Expenditure Profile |
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| 17 |
Does the expenditure profile reflect monthly costs (no prime contractor profit)? |
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| 18 |
Is the PBP expenditure profile considered reliable? Can contractor demonstrate reliability of prior expenditure forecasts on contracts for the same or similar items? |
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| 19 |
Does it match the proposal? |
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| 20 |
Is the expenditure profile a projection of actual costs to be incurred by the prime contractor and not a termination liability schedule? |
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| 21 |
Is the profile reasonable and not front-loaded? |
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Event Valuation |
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| 22 |
Have events been valued so that cumulative payments are never greater than the cumulative cost expected to be incurred at each event completion? Within this constraint, are events generally valued consistent with their relative importance in the overall successful performance of the contract? |
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| 23 |
Does the contractor have an investment in the program? (Note: Profit forbearance is not an "investment") |
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| 24 |
Did you run the DoD PBP Tool to determine appropriate consideration? |
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PBP Clause |
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| 25 |
Does the Clause provide liquidation instructions? Do liquidations tie back to CLINS? |
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| 26 |
Does the PBP schedule clearly define whether PBPs are on a line item or whole "lot" basis? |
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| 27 |
Has the ACO reviewed the clause for ease of administration? |
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| 28 |
Are payment instructions clear so DFAS can readily make payment (including specific instructions if multiple appropriations are involved)? |
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| 29 |
Does the contractor understand that DFAS will only make one payment in a month? |
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