# 252.232-7016 Notice of Progress Payments or Performance-Based Payments.
Type: Provision
Prescribed in: 232.1005-70(c)
Current version date: APR 2020

## Prescription and Applicability

### DFARS Prescription, 232.1005-70(c)

(c) Use the provision at 252.232-7016, Notice of Progress Payments or Performance-Based Payments, in lieu of FAR 52.232-13, Notice of Progress Payments, when the solicitation contains clauses for progress payments and performance-based payments (only one type of financing will be included in the resultant contract, except as may be authorized on separate orders subject to FAR 32.1003(c)).

## Current Text

252.232-7016 Notice of Progress Payments or Performance-Based Payments.

As prescribed in 232.1005-70(c), insert the following provision:

Notice of Progress Payments or Performance-Based Payments (APR 2020)

(a) The need for customary progress payments in accordance with subpart 32.5 of the Federal Acquisition Regulation (FAR) or performance-based payments in accordance with FAR subpart 32.10 will not be considered as a handicap or adverse factor in the award of the contract.

(b) This solicitation includes a FAR and Defense Federal Acquisition Regulation Supplement (DFARS) clause for performance-based payments and a FAR clause for progress payments. The resultant contract will include either performance-based payments or progress payments, not both, except as may be authorized on separate orders subject to FAR 32.1003(c).

(1) The performance-based payments clauses will be included in the contract if—

(i) The Offeror has provided positive representation in response to DFARS 252.232-7015, Performance-Based Payments—Representation;

(ii) The Offeror proposes a performance-based payment arrangement in accordance with FAR 52.232-28, Invitation to Propose Performance-Based Payments, including proposed events and timing, event completion criteria, event values, and expected expenditure profile; and

(iii) The Offeror and the Government reach agreement on all aspects of the arrangement.

(2) If performance-based payments clauses are not included in the resultant contract, the progress payments clause included in this solicitation will be included in any resultant contract, modified or altered if necessary in accordance with FAR 52.232-16 and its Alternate I. Even though the progress payments clause is included in the contract, the clause shall be inoperative during any time the contractor's accounting system and controls are determined by the Government to be inadequate for segregation and accumulation of contract costs.

(End of provision)

[85 FR 19691, Apr. 8, 2020]

## Active Class Deviations Affecting This Clause

### Class Deviation 2026-O0022, DFARS RFO Implementation (Part 32)
- Status: Active
- Date Issued: 2026-02-01
- Change type: MODIFIED
- Action: Modified by RFO class deviation

## Suggested Questions

You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?

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Source: https://part52.dev
Generated: 2026-04-21 17:40 UTC
Reference: https://www.ecfr.gov/current/title-48/section-252.232-7016