This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0022, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.
(a) Contracting officer action. Performance-based payments are not practical for use on all fixed-price contracts because they require considerable effort between the contractor and Government to identify the appropriate performance-based payment events and establish the proper completion criteria for those events. Additionally, FAR 32.1003 prohibits contracts from having both progress payments and performance-based payment financing on a contract at the same time. Additional information and instruction on performance-based payments are provided in the DoD Performance-based Payments Guide on the Defense Pricing, Contracting, and Acquisition Policy (Price, Cost and Finance) website under Pricing Topics, Performance Based Payment. See https://www.acq.osd.mil/asda/dpc/pcf/docs/resources-training/Performance_Based_Payment_(PBP)_Guide.pdf.
Authoritative source
Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0022, signed February 1, 2026. Verify against the attachment before relying on this text.
- .docx attachment for Class Deviation 2026-O0022
- Class Deviation 2026-O0022 memorandum (PDF)
- Class Deviation 2026-O0022 on part52.dev
Codified PGI
The codified text remains published on acquisition.gov but is superseded by this Class Deviation. View codified PGI 232.1001.