2-17.2 Progress Payments

If the dollar value of a prospective contract is within the CO’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 CO 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).)