PGI 204.202-77: Payment instructions.
R-DFARS PGI › Part 204 › PGI 204.202-77 · issued under 2026-O0043
Deviated Text
This text comes from the Word attachment to class deviation 2026-O0043, not from acquisition.gov. The deviation memo directs contracting officers to use it in place of the codified PGI. The source attachment linked below is authoritative.
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(a) Use payment instructions in contracts and orders that are funded by multiple accounting classification reference number (ACRN) citations and—
(1) Include deliverable line items or deliverable subline items (see FAR 4.202) that are funded by multiple ACRNs; or
(2) Authorize financing payments.
(b) Insert the table at paragraph (c) of this section in Section G of the contract, or equivalent. When some, but not all, of the fixed-price line items in a contract are subject to contract financing payments, the contracting officer must clearly identify to which line items the payment clause(s) included in Section I of the contract apply.
(c) The payment office must allocate and record the amounts paid from the ACRNs in the contract using table 204-1 based on the type of payment request submitted (see DFARS 252.232-7006) and the type of effort identified by the Product Service Code for each deliverable line item or subline item (see FAR 4.202-4).
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Table 204-1
| For Government Use Only | For Government Use Only | For Government Use Only | For Government Use Only | For Government Use Only | For Government Use Only |
|---|---|---|---|---|---|
| Contract/Order Payment Clause | Type of Payment Request | Supply | Service | Construction | Payment Office Allocation Method |
| 52.212-4 (Alt I), Contract Terms and Conditions—Commercial Products and Commercial Services; 52.216-7, Allowable Cost and Payment; 52.232-7, Payments Under Time-and-Materials and Labor-Hour Contracts | Cost Voucher | X | X | N/A | Line item specific proration. If there is more than one ACRN within a deliverable line item, the funds will be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN on the line item billed. |
| 52.232-1, Payments, 252.217-7007, Payments (vessel repair and alterations) | Navy Shipbuilding Invoice (Fixed Price) | X | X | N/A | Line item specific by fiscal year. If there is more than one ACRN within a deliverable line or deliverable subline item, the funds will be allocated using the oldest funds first. In the event of a deliverable line or deliverable subline item with two or more ACRNs with the same fiscal year, those amounts will be prorated to the available unliquidated funds for that year. |
| 52.232-1, Payments; 52.232-2, Payments Under Fixed-Price Research and Development Contracts; 52.232-3, Payments Under Personal Services Contracts; 52.232-4, Payments Under Transportation Contracts and Transportation-Related Services Contracts; and 52.232-6, Payments Under Communication Service Contracts With Common Carriers | Invoice | X | X | N/A | Line item specific proration. If there is more than one ACRN within a deliverable line item or deliverable subline item, the funds will be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN on the deliverable line or deliverable subline item for which payment is requested. |
| 52.232-5, Payments Under Fixed-Price Construction Contracts | Construction and Facilities Management Invoice | N/A | N/A | X | Line item specific by fiscal year. If there is more than one ACRN within a deliverable line or deliverable subline item, the funds will be allocated using the oldest funds first. In the event of a deliverable line or deliverable subline item with two or more ACRNs with the same fiscal year, those amounts will be prorated to the available unliquidated funds for that year. |
| 52.232-16, Progress Payments (excluding contracts with multiple lot progress payments) | Progress Payment* | X | X | N/A | Contract-wide proration. Funds must be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN. Progress payments are considered contract level financing, and the “contract price” must reflect the fixed-price portion of the contract per FAR 32.501-3. |
| 52.232-16, Progress Payments; 252.232-7018, Progress Payments—Multiple Lots | Progress Payment* | X | X | N/A | Lot-wide proration (applies to lots specifically identified in the contract). If there is more than one ACRN within a lot, the funds will be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN on the lot for which payment is requested. See paragraph (c) of this section for multiple lot CLIN structure. |
| 52.232-29, Terms for Financing of Purchases of Commercial Products and Commercial Services; 52.232-30, Installment Payments for Commercial Products and Commercial Services | Commercial Product and Commercial Service Financing* | X | X | N/A | Specified in approved payment. The contracting officer must specify the amount to be paid and the account(s) to be charged for each payment approval in accordance with FAR 32.207(b)(2). |
| 52.232-32, Performance-Based Payments | Performance-Based Payments* | X | X | N/A | Specified in approved payment. The contracting officer must specify the amount to be paid and the account(s) to be charged for each payment approval in accordance with FAR 32.1007(b)(2). |
| 252.232-7002, Progress Payments for Foreign Military Sales Acquisitions | Progress Payment* | X | X | N/A | Allocate costs among line items and countries in a manner acceptable to the administrative contracting officer. |
| *Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing). | *Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing). | *Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing). | *Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing). | *Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing). | *Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing). |
(c) The following example illustrates a contract with multiple lots. Note that each lot is specifically identified in Section B of the Schedule in the event lot-wide proration will be used in accordance with DFARS 252.232-7018, Progress Payments-Multiple Lots. Note also that cost-reimbursement line items are not included in the request for progress payment.
Section B – Supplies or services and prices/costs.
| ITEM NO. | SUPPLIES/SERVICE | QUANTITY | UNIT | UNIT PRICE | AMOUNT |
|---|---|---|---|---|---|
| Lot 1 (FYXX) | |||||
| 0001 | Lot 1 ABC Vehicle (FFP) | ||||
| 0001AA | Lot 1 ABC Vehicles, Army (Procurement) | 19 | EA | $300,000 | $5,700,000 |
| 0001AB | Lot 1 ABC Vehicles, Marine Corps (Procurement) | 11 | EA | $300,000 | $3,300,000 |
| 0002 | Data for Item 0001 | NSP | |||
| 0003 | Lot 1 Initial Spares (FFP) | ||||
| 0003AA | Lot 1 ABC Vehicle Initial Spares Army (See Exhibit C, $456,000) (Procurement) | ||||
| 0003AB | Lot 1 ABC Vehicle Initial Spares Marine Corps (See Exhibit D, $264,000) (Procurement) | ||||
| 0004 | Lot 1 System Engineering and Program Management (CPFF) | 1 | Lot | Est. Cost: $167,400 Fixed Fee: $12,600 | |
| OPTION ITEMS | |||||
| Lot 2 (FYXY) | |||||
| 1001 | Lot 2 ABC Vehicles (FFP) | ||||
| 1001AA | Lot 2 ABC Vehicles, Army (Procurement) | 25 | EA | $303,000 | $7,575,000 |
| 1001AB | Lot 2 ABC Vehicles, Marine Corps (Procurement) | 15 | EA | $307,500 | $4,545,000 |
| 1002 | Data for Item 1001 | NSP | |||
| 1003 | Lot 2 Initial Spares (FFP) | ||||
| 1003AA | Lot 2 ABC Vehicle Initial Spares Army (See Exhibit E, $606,000) (Procurement) | ||||
| 1003AB | Lot 2 ABC Vehicle Initial Spares Marine Corps (See Exhibit F, $363,600) (Procurement) | ||||
| 1004 | Lot 2 System Engineering and Program Management (CPFF) | 1 | Lot | Est. Cost: $225,432 Fixed Fee: $16,968 |