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FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.1

DFARS 232.102-70 Provisional delivery payments.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This DFARS section lets a contracting officer make provisional delivery payments to pay a contractor for costs of supplies and services already delivered and accepted under certain undefinitized contract actions. It matters because it tells contractors when such interim payments are possible and how they must be handled, including that they cannot include profit or exceed obligated funds.

Applies to: Contractors under undefinitized contract actions such as letter contracts, orders under basic ordering agreements, spares provisioning documents, unpriced equitable adjustments on fixed-price contract

What it requires

  • Use provisional delivery payments sparingly
  • Price provisional delivery payments conservatively
  • Reduce provisional delivery payments by liquidating previous progress payments in accordance with the Progress Payments clause
  • Do not include profit in provisional delivery payments

Key terms: provisional delivery payments · undefinitized contract action · letter contracts · basic ordering agreements · Progress Payments clause

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The contracting officer may establish provisional delivery payments to pay contractors for the costs of supplies and services delivered to and accepted by the Government under the following contract actions if undefinitized:

(1) Letter contracts contemplating a fixed-price contract.

(2) Orders under basic ordering agreements.

(3) Spares provisioning documents annexed to contracts.

(4) Unpriced equitable adjustments on fixed-price contracts.

(5) Orders under indefinite-delivery contracts.

(b) Provisional delivery payments shall be—

(1) Used sparingly;

(2) Priced conservatively; and

(3) Reduced by liquidating previous progress payments in accordance with the Progress Payments clause.

(c) Provisional delivery payments shall not—

(1) Include profit;

(2) Exceed funds obligated for the undefinitized contract action; or

(3) Influence the definitized contract price.

Sections that refer to it

← 232.102 Description of contract financing methods. · 232.104 Providing contract financing. →

Rule changes for DFARS Part 232

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 232.102-70 Provisional delivery payments · SpendQuery