DFARS 252.232-7004 - 252.232-7004 DoD Progress Payment Rates.

Current Status

DEVIATION ACTIVE

WARNING: This clause is affected by 1 active class deviation. Use the deviation text, NOT the standard clause text from the eCFR.

Last Checked	2026-03-11 20:11 UTC
Authoritative Source	https://www.ecfr.gov/current/title-48/section-252.232-7004

Active Class Deviations

2020-O0010 - Class Deviation 2020-O0010 â Revision 2 - Progress Payment Rates

Effective: None
Effect: REMOVE

Remove clause 252.232-7004

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Standard Clause Text (eCFR)

252.232-7004 DoD Progress Payment Rates. As prescribed in 232.502-4-70(b), ~~use the following clause: DoD Progress Payment Rates (OCT 2014)~~

If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and ~~liquidations~~ rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 90 percent.

(End of clause)

[79 FR 61582, Oct. 14, 2014]

As Modified by Deviation

252.232-7004, DoD Progress Payment Rates (DEVIATION 2020-O0010), in lieu of the clause at Defense Federal Acquisition Regulation Supplement (DFARS) 252.232-7004. When providing for progress payments in unrestricted solicitations that could result in award to either small or large business concerns, contracting officers are reminded to include both the clauses at FAR 52.232-16 and at DFARS 252.232-7004 (DEVIATION 2020-O0010) in the solicitation to enable use of the appropriate clause in the eventual award. Class Deviation 2020-O0010, Revision 2 Progress Payment Rates On March 20, 2020, in response to the Coronavirus Disease 2019 (COVID-19) national emergency, DoD issued Class Deviation 2020-0010, and subsequently Revision 1, to increase the progress payment rates at DFARS 232.501-1 to 90 percent for large business concerns and 95 percent for small business concerns. In accordance with H.J. Res 7, which was signed into law on April 10, 2023, the national emergency declared by the President on March 13, 2020, has been terminated. This Revision 2 reinstates the progress payment rate of 80 percent in the clause at FAR 52.232-16, Progress Payments for new contracts with large businesses and retains the temporary increase to the progress payment rate of 95 percent for small business concerns to enable their continued access to cash flow through this financing method. This class deviation remains in effect until incorporated into the FAR or DFARS or otherwise rescinded. Please send questions and requests for additional information to osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil. John M. Tenaglia Principal Director, Defense Pricing and Contracting Attachment: As stated Page 2 of 2 Class Deviation 2020-O0010, Revision 2 Progress Payment Rates Attachment 252.232-7004 DoD Progress Payment Rates. (DEVIATION 2020-O0010) Use the following deviation clause in lieu of the clause at DFARS 252.232-7004 as prescribed in DFARS 232.502-4-70(b), if the contractor is a small business or small disadvantaged business concern: DOD PROGRESS PAYMENT RATES (MAR 2020) (DEVIATION 2020-O0010)

If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and liquidation rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 95 percent.