DATE: October 1, 2001

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Progress Payment Rate for Large Businesses

SOURCE: Federal Register, October 1, 2001, Vol. 66, No. 190, page 49864

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 232.501-1, Customary Progress Payment Rates, and DFARS 252.232-7004, DOD Progress Payment Rates, to increase the customary uniform progress payment rate for large business concerns from 75% to 80%. The progress payment rate change is applicable only to contract awards made on or after October 1, 2001. Contracts awarded before October 1, 2001, will not be modified to include the 80% rate.

EDITOR'S NOTE: For more on the proposed rule, see the August 24, 2001, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Customary Progress Payment Rate for Large Business Concerns."

EFFECTIVE DATE: October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Sandra Haberlin, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0289; fax: 703-602-0350. Cite DFARS case 2001-D012.

SUPPLEMENTAL INFORMATION: On August 24, 2001, DOD published a proposed rule to increase the DOD customary uniform progress payment rate for large businesses in DFARS 232.501-1 and DFARS 252.232-7004 from 75% (which was established by the Fiscal Year 1994 Defense Appropriations Act (Public Law 103-139)) to the 80% rate used by other federal agencies (see Federal Acquisition Regulation (FAR) 32.501-1, Customary Progress Payment Rates). The FY 2002 budget submitted by the president accommodated the progress payment increase, and it was approved by Congress.

DOD received two comments on the proposed rule, and both were in favor of the change. Therefore, DOD has decided to finalize the proposed rule without changes.

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

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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