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.
Contracting Officer Actions
1
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).
2
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.
3
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).
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The deviation stays in effect until incorporated into the FAR or DFARS or otherwise rescinded.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).