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Link to "2-17.1 Advance Payments" Link to contents for "2 Postal Service Supplying Practices Process Step 2: Evaluate Sources"      Link to "2-17.3 Other Topics Considered"

2-17.2 Progress Payments

If the dollar value of a prospective contract is within the contracting officer’s delegated contracting authority, he or she may approve the use of progress payments for the particular contract. For contracts over $1,000,000 (excluding construction, architect/engineer (A/E) and construction management contracts), progress payments must also be approved by the VP, Finance.

Before approving progress payments, the contracting officer must make a written determination establishing that:

  • Progress payments are in the Postal Service’s best interests.
  • The supplier’s accounting system and controls are adequate for proper administration of progress payments, or their adequacy will be ascertained before contract award.
  • Monthly progress reports will be obtained from the supplier, showing progress of the work as related to progress payments made.

Any contract providing for advance payments must include Clause 1-2: Advance Payments. Any contract, other than a construction contract, providing for progress payments must include Clause 1-3: Progress Payments. (For construction contracts, see Clause B-48: Payment (Construction).)




Link to "2-17.1 Advance Payments" Link to contents for "2 Postal Service Supplying Practices Process Step 2: Evaluate Sources"      Link to "2-17.3 Other Topics Considered"

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