52.232-13 Notice of Progress Payments
Source: FAR 52.232-13 on acquisition.gov
Requesting progress payments will not affect contract award decisions, but contractors must have adequate accounting systems to receive them.
Overview
FAR 52.232-13, "Notice of Progress Payments," is a solicitation provision that informs bidders and offerors that the need for customary progress payments, as regulated under FAR Subpart 32.5, will not negatively impact their chances of contract award. The provision clarifies that the Progress Payments clause (FAR 52.232-16) will be included in any resulting contract and may be modified as necessary. However, the clause will not be operative if the contractor's accounting system is found inadequate by the Government for proper segregation and accumulation of contract costs. This ensures that only contractors with compliant accounting systems can benefit from progress payments, promoting financial integrity and accountability in contract performance.
Key Rules
- No Adverse Impact for Progress Payments
- Contractors requesting progress payments will not be penalized or disadvantaged in the contract award process.
- Inclusion of Progress Payments Clause
- The Progress Payments clause will be included in the contract and may be modified as needed per FAR 52.232-16 and its Alternate I.
- Accounting System Adequacy
- The Progress Payments clause is inoperative if the contractor's accounting system does not meet Government standards for cost segregation and accumulation.
Responsibilities
- Contracting Officers: Must include this provision in solicitations with progress payments and ensure contractor accounting systems are adequate before activating progress payments.
- Contractors: Must maintain an adequate accounting system to be eligible for progress payments.
- Agencies: Responsible for evaluating contractor accounting systems and enforcing compliance.
Practical Implications
- This provision assures contractors that requesting progress payments is standard and not a disadvantage.
- Contractors must ensure their accounting systems are compliant to receive progress payments.
- Common issues include delays or denial of progress payments due to inadequate accounting systems.
As prescribed in 32.502-3(a), insert the following provision in invitations for bids and requests for proposals that include a Progress Payments clause:
Notice of Progress Payments (Apr 1984)
The need for customary progress payments conforming to the regulations in subpart 32.5 of the Federal Acquisition Regulation (FAR) will not be considered as a handicap or adverse factor in the award of the contract. The Progress Payments clause included in this solicitation will be included in any resulting contract, modified or altered if necessary in accordance with subsection 52.232-16 and its Alternate I of the FAR. Even though the clause is included in the contract, the clause shall be inoperative during any time the contractor’s accounting system and controls are determined by the Government to be inadequate for segregation and accumulation of contract costs.
(End of clause)