DATE: September 9, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Performance-Based Payments

SOURCE: Federal Register, September 9, 2004, Vol. 69, No. 174, page 54651

AGENCIES: Department of Defense (DOD)

ACTION: Request for Public Comments

SYNOPSIS: DOD is conducting an assessment regarding the use of performance-based payments as a method of financing for DOD contracts. The Office of Defense Procurement and Acquisition Policy (DPAP) is soliciting comments on potential areas for improving DOD's use of performance-based payments.

EDITOR'S NOTE: Performance-based payments are addressed in Federal Acquisition Regulation (FAR) Subpart 32.10, Performance-Based Payments, and DFARS Subpart 232.10, Performance-Based Payments.

DATES: Comments must be submitted on or before October 25, 2004.

ADDRESSES: Submit comments to the Office of the Director, Defense Procurement and Acquisition Policy, Policy Directorate, ATTN: David Capitano, Room 3C838, 3000 Defense Pentagon, Washington, DC 20301-3000; by fax to 703-614-0719 (ATTN: David Capitano); or by e-mail to david.capitano@osd.mil.

FOR FURTHER INFORMATION CONTACT: David Capitano, 703-847-7486.

SUPPLEMENTARY INFORMATION: Government policy is that performance-based payments are the preferred form of contract financing when the contracting officer finds them practical and the contractor agrees to their use. To further this policy, the DPAP is soliciting comments regarding actions (such as policy changes, training, etc.) that DOD should undertake to:

  1. Increase the use of performance-based payments as the method of contract financing on DOD contracts -- for example, what should be done to increase the number of contracts that utilize performance-based payments?

  2. Improve the efficiency of performance-based payments when used on DOD contracts -- for example, what should be done to improve the use of performance-based payments on those contracts that provide for such contract financing?

In addition, DPAP is asking that respondents provide: (1) a brief summary of their experience in using performance-based payments on DOD contracts; and (2) the most important advantages and disadvantages that performance-based payments have with respect to progress payments.

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

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.