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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: November 14, 2001

SUBJECT: Federal Acquisition Regulation (FAR); Progress Payment Requests Under Indefinite-Delivery Contracts

SOURCE: Federal Register, November 14, 2001, Vol. 66, No. 220, page 57293

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that FAR 52.232-16, Progress Payments, be amended to require contractors, under indefinite-delivery indefinite-quantity (IDIQ) contracts, to account for and submit progress payment requests under individual orders as if each order constitutes a separate contract.

DATES: Comments on the proposed rule must be submitted no later than January 14, 2002.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405; e-mail to: farcase.2001-006@gsa.gov.

FOR FURTHER INFORMATION CONTACT: Jeremy Olson, 202-501-3221.

SUPPLEMENTAL INFORMATION: Paragraph (c) of FAR 32.503-5, Administration of Progress Payments, states "under indefinite-delivery contracts, the contracting officer should administer progress payments made under each individual order as if the order constituted a separate contract, unless agency procedures provide otherwise." This language recognizes that funds on IDIQ contracts are normally obligated on each individual order; that deliveries and contract performance, which factor into progress payment calculations, are monitored at the order level, as opposed to the basic contract level; and that progress payments normally are administered at the order level. However, there is no related language in FAR 52.232-16, Progress Payments.

This proposed rule would make the following changes to the FAR:

• To paragraph (c) of FAR 32.503-5 would be added the following sentence: "When the contract will be administered by an agency other than the awarding agency, the contracting officer must coordinate with the contract administration office if the awarding agency wants the administration of progress payments to be on a basis other than order-by-order."
  
  
• A new paragraph (l) would be added to FAR 52.232-16 addressing progress payments under IDIQ contracts. Paragraph (l) would state, "The contractor shall account for and submit progress payment requests under individual orders as if the order constituted a separate contract, unless otherwise specified in this contract."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

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