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

Status: Active

Date Issued: 2023-07-07

Signed By: John M. Tenaglia, Principal Director, Defense Pricing and Contracting

Scope: All DoD contracting officers

Applies to DAF/Air Force: Yes

Summary

Revision 2 supersedes Revision 1 of this deviation. For large business concerns, Contracting Officers (COs) must return to the standard Federal Acquisition Regulation (FAR) 52.232-16 progress payment rate of 80 percent for new contracts awarded on or after July 7, 2023. For small business concerns, COs continue using the deviation version of Defense Federal Acquisition Regulation Supplement (DFARS) 252.232-7004, which sets the progress payment rate at 95 percent.

Required Contracting Officer Actions

For large business contracts with progress payments awarded on or after July 7, 2023, use the standard FAR 52.232-16 clause. Do not amend existing contracts, task orders or delivery orders to remove clause 52.232-16 (DEVIATION 2020-O0010).
For small business contracts with progress payments, use the deviation clause 252.232-7004 (DEVIATION 2020-O0010) in lieu of standard DFARS 252.232-7004.
In 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).

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

COVID-19 Emergency Terminated: H.J. Res 7, signed April 10, 2023, terminated the national emergency declared March 13, 2020. This triggered the reinstatement of the 80 percent rate for large businesses.

Deviation Remains in Effect: The deviation stays in effect until incorporated into the FAR or DFARS or otherwise rescinded. Send questions to osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil.

No Retroactive Amendment: Notwithstanding FAR 1.108(d)(3), COs shall not amend existing contracts, task orders or delivery orders to remove clause 52.232-16 (DEVIATION 2020-O0010).