PGI 204.7108 Payment instructions.

(a) Scope. This section applies to contracts and orders that are funded by multiple accounting

classification reference number (ACRN) citations and—

(1) Include deliverable line items or deliverable subline items (see FAR 4.1005-1) that are funded by

multiple ACRNs; or

(2) Authorize financing payments.

(b) For contracts and orders covered by this subpart—

(1) The contracting officer shall insert the table at paragraph (b)(2), or a link to the table at (b)(2)

(https://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/current/PGI204_71.htm#pay...) in Section G of the

contract, or equivalent. When some, but not all, of the fixed-price line items in a contract are subject

to contract financing payments, the contracting officer shall clearly identify to which line items the

payment clause(s) included in Section I of the contract apply.

(2) The payment office shall allocate and record the amounts paid from the ACRNs in the contract

using the table in this paragraph (b)(2) based on the type of payment request submitted (see DFARS

252.232-7006) and the type of effort identified by the Product Service Code for each deliverable line

item or subline item (see FAR 4.1005-1).

For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.212-4 (Alt I),

Contract Terms and

Conditions—Commercial

Products and

Commercial Services;

52.216-7, Allowable

Cost and Payment;

52.232-7, Payments

Under Time-andMaterials and LaborHour Contracts

Cost Voucher X X N/A

Line item

specific

proration. If

there is more

than one

ACRN within

a deliverable

contract line

item, the

funds will be

allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN on the

line item

billed.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-1, Payments;

252.217-7007, Payments

(vessel repair and

alterations)

Navy Shipbuilding

Invoice (Fixed

Price)

X X N/A

Line item

specific by

fiscal year. If

there is more

than one

ACRN within

a deliverable

line or

deliverable

subline item,

the funds will

be allocated

using the

oldest funds

first. In the

event of a

deliverable

line or

deliverable

subline item

with two or

more ACRNs

with the same

fiscal year,

those amounts

will be

prorated to

the available

unliquidated

funds for that

year.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-1, Payments;

52.232-2, Payments

under Fixed-Price

Research and

Development Contracts;

52.232-3, Payments

under Personal Services

Contracts;

52.232-4, Payments

under Transportation

Contracts and

Transportation-Related

Services Contracts; and

52.232-6, Payments

under Communication

Service Contracts with

Common Carriers

Invoice X X N/A

Line item

specific

proration. If

there is more

than one

ACRN within

a deliverable

line item or

deliverable

subline item,

the funds will

be allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN on the

deliverable

line or

deliverable

subline item

for which

payment is

requested.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-5, Payments

Under Fixed-Price

Construction Contracts

Construction and

Facilities

Management

Invoice

N/A N/A X

Line item

specific by

fiscal year. If

there is more

than one

ACRN within

a deliverable

line or

deliverable

subline item,

the funds will

be allocated

using the

oldest funds

first. In the

event of a

deliverable

line or

deliverable

subline item

with two or

more ACRNs

with the same

fiscal year,

those amounts

will be

prorated to

the available

unliquidated

funds for that

year.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-16, Progress

Payments (excluding

contracts with multiple

lot progress payments)

Progress Payment* X X N/A

Contract-wide

proration.

Funds shall be

allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN.

Progress

payments are

considered

contract level

financing, and

the “contract

price” shall

reflect the

fixed-price

portion of the

contract per

FAR 32.501-3.

52.232-16, Progress

Payments

252.232-7018, Progress

Payments- Multiple Lots

Progress Payment* X X N/A

Lot-wide

proration

(applies to lots

specifically

identified in

the contract).

If there is

more than one

ACRN within

a lot, the

funds will be

allocated in

the same

proportion as

the amount of

funding

currently

unliquidated

for each

ACRN on the

lot for which

payment is

requested.

See

paragraph (c)

of this section

for multiple

lot CLIN

structure.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

52.232-29, Terms for

Financing of Purchases

of Commercial Products

and Commercial

Services;;

52.232-30, Installment

Payments for

Commercial Products

and Commercial

Services

Commercial

Product and

Commercial

Service;

Financing*

X X N/A

Specified in

approved

payment. The

contracting

officer shall

specify the

amount to be

paid and the

account(s) to

be charged for

each payment

approval in

accordance

with FAR

32.207(b)(2).

52.232-32,

Performance-Based

Payments

Performance-Based

Payments* X X N/A

Specified in

approved

payment. The

contracting

officer shall

specify the

amount to be

paid and the

account(s) to

be charged for

each payment

approval in

accordance

with FAR

32.1007(b)(2).

252.232-7002, Progress

Payments for Foreign

Military Sales

Acquisitions

Progress Payment* X X N/A

Allocate costs

among line

items and

countries in a

manner

acceptable to

the

Administrative

Contracting

Officer.
For Government Use Only

Contract/Order

Payment Clause

Type of Payment

Request Supply Service Construction

Payment

Office

Allocation

Method

*Liquidation of

Financing Payments.

Liquidation will be

applied by the payment

office against those

ACRNs which are

identified by the

payment instructions for

the delivery payment

and in keeping with the

liquidation provision of

the applicable contract

financing clause (i.e.,

progress payment,

performance-based

payment, or commercial

product and commercial

service financing).

(c) The following example illustrates a contract with multiple lots. Note that each lot is specifically

identified in Section B of the Schedule in the event lot-wide proration will be used in accordance

with DFARS 252.232-7018, Progress Payments-Multiple Lots. Note also that cost-reimbursement line

items are not included in the request for progress payment.

Section B – Supplies or services and prices/costs.

ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

Lot 1 (FYXX)

0001 Lot 1 ABC Vehicle (FFP)

0001AA Lot 1 ABC Vehicles,

Army (Procurement) 19 EA $300,000 $5,700,000

0001AB

Lot 1 ABC Vehicles,

Marine Corps

(Procurement)

11 EA $300,000 $3,300,000

0002 Data for Item 0001 NSP

0003 Lot 1 Initial Spares (FFP)
ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

0003AA

Lot 1 ABC Vehicle Initial

Spares Army (See

Exhibit C, $456,000)

(Procurement)

0003AB

Lot 1 ABC Vehicle Initial

Spares Marine Corps

(See Exhibit D,

$264,000) (Procurement)

0004

Lot 1 System

Engineering and

Program Management

(CPFF)

1 Lot

Est. Cost:

$167,400

Fixed Fee:

$12,600

OPTION ITEMS

Lot 2 (FYXY)

1001 Lot 2 ABC Vehicles (FFP)

1001AA Lot 2 ABC Vehicles,

Army (Procurement) 25 EA $303,000 $7,575,000

1001AB

Lot 2 ABC Vehicles,

Marine Corps

(Procurement)

15 EA $307,500 $4,545,000

1002 Data for Item 1001 NSP

1003 Lot 2 Initial Spares (FFP)

1003AA

Lot 2 ABC Vehicle Initial

Spares Army (See

Exhibit E, $606,000)

(Procurement)

1003AB

Lot 2 ABC Vehicle Initial

Spares Marine Corps

(See Exhibit F,

$363,600) (Procurement)
ITEM

NO. SUPPLIES/SERVICE QUANTITY UNIT UNITPRICE AMOUNT

1004

Lot 2 System

Engineering and

Program Management

(CPFF)

1 Lot

Est. Cost:

$225,432

Fixed Fee:

$16,968

Parent topic: PGI 204.71 -UNIFORM CONTRACT LINE ITEM NUMBERING SYSTEM