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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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42 sections with “Performance-Based Payments”: the first 40

  • FAR 32.1007 Administration and payment of performance-based payments.
    (a) Responsibility. The contracting officer responsible for administering performance-based payments (see 42.302(a)(13)) for the contract shall review and approve all performance-based payments for that contract. (b) Approval of financing …
  • FAR 52.232-28 Invitation To Propose Performance-Based Payments.
    As prescribed in 32.1005(b)(1), insert the following provision: Invitation To Propose Performance-Based Payments (MAR 2000) (a) The Government invites the offeror to propose terms under which the Government will make performance-based con…
  • FAR 52.232-32 Performance-Based Payments.
    As prescribed in 32.1005, insert the following clause: Performance-Based Payments (APR 2012) (a) Amount of payments and limitations on payments. Subject to such other limitations and conditions as are specified in this contract and this c…
  • DFARS 252.232-7012 Performance-Based Payments—Whole-Contract Basis.
    As prescribed in 232.1005-70(a)(1), use the following clause: PERFORMANCE-BASED PAYMENTS—WHOLE-CONTRACT BASIS (DEC 2022) (a) Performance-based payments shall form the basis for the contract financing payments provided under this contract, …
  • DFARS 252.232-7013 Performance-Based Payments—Deliverable-Item Basis.
    As prescribed in 232.1005-70(a)(2), use the following clause: Performance-Based Payments—Deliverable-Item Basis (DEC 2022) (a) Performance-based payments shall form the basis for the contract financing payments provided under this contrac…
  • DFARS 252.232-7016 Notice of Progress Payments or Performance-Based Payments.
    …cribed in 232.1005-70(c), insert the following provision: Notice of Progress Payments or Performance-Based Payments (APR 2020) (a) The need for customary progress payments in accordance with subpart 32.5 of the Federal Acquisition Regulat…
  • FAR 32.1008 Suspension or reduction of performance-based payments.
    …r reduction of payments, whenever exercising the Government's rights to suspend or reduce performance-based payments in accordance with paragraph (e) of the clause at 52.232-32, Performance-Based Payments.
  • DFARS 252.232-7015 Performance-Based Payments—Representation.
    As prescribed in 232.1005-70(b), use the following provision: Performance-Based Payments—Representation (DEC 2022) (a) In accordance with 10 U.S.C. 3802(c), the Contractor's financial statements shall be in compliance with Generally Accep…
  • FAR 32.1002 Bases for performance-based payments.
    Performance-based payments may be made on any of the following bases: (a) Performance measured by objective, quantifiable methods. (b) Accomplishment of defined events. (c) Other quantifiable measures of results.
  • FAR 32.504 Subcontracts under prime contracts providing progress payments.
    (a) Subcontracts may include either performance-based payments, provided they meet the criteria in 32.1003, or progress payments, provided they meet the criteria in subpart 32.5 for customary progress payments, but not both. Subcontracts fo…
  • FAR 52.232-16 Progress Payments.
    …ntractor becomes bankrupt or insolvent. (4) If the financing payments are in the form of performance-based payments, the terms of the subcontract or interdivisional order concerning payments— (i) Are substantially similar to the Performan…
  • FAR 32.1001 Policy.
    (a) Performance-based payments are the preferred Government financing method when the contracting officer finds them practical, and the contractor agrees to their use. (b) Performance-based payments are contract financing payments that are…
  • FAR 32.1004 Procedures.
    Performance-based payments may be made either on a whole contract or on a deliverable item basis, unless otherwise prescribed by agency regulations. Financing payments to be made on a whole contract basis are applicable to the entire contra…
  • FAR 32.1005 Solicitation provision and contract clause.
    (a) Insert the clause at 52.232-32, Performance-Based Payments, in— (1) Solicitations that may result in contracts providing for performance-based payments; and (2) Fixed-price contracts under which the Government will provide performance…
  • FAR 32.1010 Risk of loss.
    (a) Under the clause at 52.232-32, Performance-Based Payments, and except for normal spoilage, the contractor bears the risk of loss for Government property, even though title is vested in the Government, unless the Government has expressly…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    … (1) “No financing” means either that the contract does not provide progress payments or performance-based payments, or that the contract provides them only on a limited basis, such as financing of first articles. Do not compute a working …
  • DFARS 232.1001 Policy.
    (a) As with all contract financing, the purpose of performance-based payments is to assist the contractor in the payment of costs incurred during the performance of the contract. See PGI 232.1001(a) for additional information on use of perf…
  • DFARS 232.1004 Procedures.
    (b) Establishing performance-based finance payment amounts. (i) The contracting officer should include in a solicitation both the progress payments and performance-based payments provisions and clauses prescribed in this part, when consider…
  • DFARS 232.1005-70 Solicitation provisions and contract clauses.
    …e following clauses with appropriate fill-ins in solicitations and contracts that include performance-based payments: (1) For performance-based payments made on a whole-contract basis, use the clause at 252.232-7012, Performance-Based Paym…
  • DFARS 252.242-7005 Contractor business systems.
    …the Contracting Officer will withhold 5 percent of amounts due from progress payments and performance-based payments, and direct the Contractor, in writing, to withhold 5 percent from its billings on interim cost vouchers on cost-reimbursem…
  • DFARS 232.007 Contract financing payments.
    …icer shall insert the standard due dates of 7 days for progress payments, and 14 days for performance-based payments and interim payments on cost-type contracts, in the appropriate paragraphs of the respective payment clauses. For interim p…
  • DFARS 242.7000 Contractor business system deficiencies.
    …f payment withholding under 252.242-7005 does not exceed 10 percent of progress payments, performance-based payments, and interim payments under cost-reimbursement, labor-hour, and time-and-materials contracts billed under each of the ident…
  • FAR 32.113 Customary contract financing.
    …t 15, through either progress payments based on costs in accordance with subpart 32.5, or performance-based payments in accordance with subpart 32.10 (but not both). (e) Financing of contracts for supplies or services awarded under a sole-…
  • FAR 32.1009 Title.
    (a) Since the clause at 52.232-32, Performance-Based Payments, gives the Government title to the property described in paragraph (f) of the clause, the contracting officer shall ensure that the Government title is not compromised by other e…
  • FAR 32.102 Description of contract financing methods.
    …ted by the Government; (3) Partial payments for a contract termination proposal; or (4) Performance-based payments. (c) Loan guarantees are made by Federal Reserve banks, on behalf of designated guaranteeing agencies, to enable contracto…
  • FAR 32.110 Payment of subcontractors under cost-reimbursement prime contracts.
    … 32.202-1 for commercial product or commercial service purchase financing, or 32.1003 for performance-based payments, as applicable. (b) If customary progress payments are made, the payments do not exceed the progress payment rate in 32.50…
  • FAR 32.1003 Criteria for use.
    The contracting officer may use performance-based payments for individual orders and contracts provided— (a) The contracting officer and offeror agree on the performance-based payment terms; (b) The contract, individual order, or line ite…
  • FAR 32.000 Scope of part.
    …clauses; (g) Financing of purchases of commercial products and commercial services; (h) Performance-based payments; and (i) Electronic funds transfer payments.
  • FAR 32.001 Definitions.
    …by the Government. (1) Contract financing payments include— (i) Advance payments; (ii) Performance-based payments; (iii) Commercial advance and interim payments; (iv) Progress payments based on cost under the clause at 52.232-16, Progr…
  • FAR 32.002 Applicability of subparts.
    …l Acquisitions . (3) Subpart 32.5, Progress Payments Based on Costs. (4) Subpart 32.10, Performance-Based Payments.
  • FAR 32.006-1 General.
    …raud. This authority does not apply to commercial interim payments under subpart 32.2, or performance-based payments under subpart 32.10. (c) The agency head may not delegate his or her responsibilities under these statutes below Level IV …
  • FAR 32.104 Providing contract financing.
    … agency procedures, the contracting officer may provide contract financing in the form of performance-based payments (see subpart 32.10) or customary progress payments (see subpart 32.5) if the following conditions are met: (1) The contrac…
  • FAR 32.601 General.
    …faults in performance. (10) Breach of contract obligations concerning progress payments, performance-based payments, advance payments, financing of commercial products or commercial services, or Government-furnished property. (11) Governm…
  • FAR 32.1000 Scope of subpart.
    This subpart provides policy and procedures for performance-based payments under noncommercial purchases pursuant to Subpart 32.1.
  • FAR 42.302 Contract administration functions.
    …prove or disapprove the contractor's requests for payments under the progress payments or performance-based payments clauses. (14) Make payments on assigned contracts when prescribed in agency acquisition regulations. (15) Manage special …
  • FAR 45.600 Scope of subpart.
    … for which the Government has a lien or title solely as a result of advance, progress, or performance-based payments that have been liquidated.
  • DFARS 204.1202 Solicitation provision and contract clause.
    …tation. (xiii) 252.229-7013, Tax Exemptions (Spain)—Representation. (xiv) 252.232-7015, Performance-Based Payments—Representation.
  • DFARS 232.102 Description of contract financing methods.
    …entage or state of completion methods of measuring contractor performance may be used for performance-based payments in accordance with FAR Subpart 32.10.
  • DFARS 232.1003-70 Criteria for use.
    … shall be in compliance with Generally Accepted Accounting Principles in order to receive performance-based payments. 10 U.S.C. 3802(c)(2) specifies that it does not grant the Defense Contract Audit Agency the authority to audit compliance …
  • DFARS 245.102 Policy.
    … Government has acquired a lien or title solely because of partial, advance, progress, or performance-based payments; (G) Intellectual property or software; or (H) Real property. (5) Reporting Government property. It is DoD policy that a…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.