Sign In
  • Question

    Can you apply Progress Payments to Fixed Price Incentive Contracts. My thoughts are that if I have a FPIF contract and it has FPIF CLINs and FFP CLINs that the Progress Payments would only apply to the FFP CLINs because you can't have profit and progress payments together?


    Answer

    Yes, you can certainly have progress payments on FPI CLINs.  See FAR 52.216-16(g)(1)(iv).  It gives guidance on liquidation and witholding for FPIF contracts.  Don't forget, you have to use DoD Weighted Guidelines to establish your FPIF reward pool (Target Profit) and be sure to incorporate the progress payment rate in the DD1547 block 25 (working Capital) and the Contract Type Risk factor for Block 24.

    Open full Question Details
Chat with DAU Assistant
Bot Image