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part52.dev Federal Acquisition Clause Monitor

PGI 232.1001: Policy.

R-DFARS PGI › Part 232 › PGI 232.1001 · issued under 2026-O0022

Deviated Text
This text comes from the Word attachment to class deviation 2026-O0022, 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.

Text

(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.

Sources: Deviation attachment (.docx) · Codified PGI 232.1001