Link to "5-12.3 Partial Payments" Link to contents for "5 USPS Supplying Practices Process Step 5: Measure and Manage Supply"      Link to "5-12.5 Payment Terms"

5-12.4 Progress Payments

Progress payments are payments incrementally made in exchange for demonstrated progress toward completion of a contract and are applicable to the performance of any contract that incurs costs over time that could negatively affect the supplier’s operations.

The CO is responsible for determining the need for progress payments and must consult the client and Assigned counsel regarding the nature of contract performance in relation to the specific purchase and payment terms stipulated in the contract. The CO must obtain monthly progress reports from the supplier, illustrating progress of the work as related to progress payments made. The CO may, when approving progress payment requests, rely on the supplier’s accounting system. However, postpayment reviews (including audits, when considered necessary) must be made periodically to determine the validity of progress payments already made and expected to be made. The CO will consult the client regarding the progress of contract performance when progress payments are made.

Progress payments are explained in greater detail in Section 2-17, Determine Need for Progress or Advance Payment.




Link to "5-12.3 Partial Payments" Link to contents for "5 USPS Supplying Practices Process Step 5: Measure and Manage Supply"      Link to "5-12.5 Payment Terms"