52.242-2 Production Progress Reports
Source: FAR 52.242-2 on acquisition.gov
Timely submission of production progress reports is mandatory, and failure to comply can result in significant payment withholdings.
Overview
FAR 52.242-2, Production Progress Reports, requires contractors to prepare and submit production progress reports as specified in the contract schedule. This clause ensures that the government receives timely updates on the status of contract performance, allowing for effective monitoring and management of production timelines. Failure to provide these reports can result in the withholding of payments by the Contracting Officer, up to $25,000 or 5% of the contract value, whichever is less. This clause is typically included in contracts where monitoring production progress is critical to contract success.
Key Rules
- Submission of Reports
- Contractors must prepare and submit production progress reports according to the requirements detailed in the contract schedule.
- Withholding of Payment
- If a contractor fails to submit required reports, the Contracting Officer may withhold payment, up to $25,000 or 5% of the contract value, whichever is less.
Responsibilities
- Contracting Officers: Specify reporting requirements in the contract schedule and enforce compliance, including withholding payments if necessary.
- Contractors: Prepare and submit accurate and timely production progress reports as required.
- Agencies: Oversee contract performance and ensure timely receipt of progress information.
Practical Implications
- This clause exists to provide the government with visibility into contractor performance and production status.
- It impacts daily contract administration by requiring regular reporting and enabling financial penalties for non-compliance.
- Common pitfalls include missing report deadlines or failing to include required information, which can lead to payment delays.
As prescribed in 42.1107(a), insert the following clause:
Production Progress Reports (Apr 1991)
(a) The Contractor shall prepare and submit to the Contracting Officer the production progress reports specified in the contract Schedule.
(b) During any delay in furnishing a production progress report required under this contract, the Contracting Officer may withhold from payment an amount not exceeding $25,000 or 5 percent of the amount of this contract, whichever is less.
(End of clause)