# Class Deviation 2020-O0010
# Class Deviation 2020-O0010 – Revision 2 - Progress Payment Rates

Status: Active
Date Issued: July 7, 2023
Signed By: John M. Tenaglia, Principal Director, Defense Pricing and Contracting
Scope: All DoD contracting officers
Authority: Class Deviation authority under FAR and DFARS; issued in response to COVID-19 national emergency and subsequent termination per H.J. Res 7 (signed April 10, 2023)

## Summary

This Revision 2 supersedes Class Deviation 2020-O0010, Revision 1, by removing the deviation version of FAR 52.232-16 for large business concerns and reinstating the standard 80 percent progress payment rate for new large business contracts awarded on or after July 7, 2023. The elevated rate of 95 percent for small business concerns is retained through a continuing deviation to DFARS 252.232-7004. The change responds to the termination of the COVID-19 national emergency under H.J. Res 7.

## Required Contracting Officer Actions

1. For large business concerns: use the standard clause at FAR 52.232-16, Progress Payments, in solicitations and contracts when award is anticipated on or after July 7, 2023; do not amend existing contracts, task orders or delivery orders to remove the deviation version of clause 52.232-16.
2. For small business concerns: continue to use the attached deviation clause 252.232-7004, DoD Progress Payment Rates (DEVIATION 2020-O0010), in lieu of DFARS 252.232-7004.
3. For unrestricted solicitations that could result in award to either small or large business concerns: include both FAR 52.232-16 and DFARS 252.232-7004 (DEVIATION 2020-O0010) in the solicitation to enable use of the appropriate clause upon award.

## Affected Provisions and Clauses

### 252.232-7004,  (Clause)
- Prescribed in: 232.502-4-70(b)
- Change type: REMOVED
- Action: Remove clause 252.232-7004

### 52.232-16,  (Clause)
- Prescribed in: 32.502-4(a)
- Change type: REMOVED
- Action: Remove clause 52.232-16

## Notes

Duration: This class deviation remains in effect until incorporated into the FAR or DFARS or otherwise rescinded.

Background: The deviation was originally issued March 20, 2020, to increase progress payment rates to 90 percent for large businesses and 95 percent for small businesses in response to the COVID-19 national emergency. Revision 2 restores the large business rate to the standard 80 percent following termination of that national emergency.

Questions: Send questions and requests for additional information to osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil.

## Suggested Questions

You can ask your AI assistant:
- What actions do I need to take for this deviation?
- Does this deviation affect commercial acquisitions under Part 12?
- Which clauses need to be removed from my existing contracts?
- How does this deviation change 252.232-7004 specifically?
- Are there any SAM registration implications?

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Source: https://part52.dev
Generated: 2026-03-20
Memorandum: https://www.acq.osd.mil/dpap/policy/policyvault/USA000983-23-DPC.pdf