PGI Matrix 12-1-17 with Clarification

4/3/2019 Integrity - Service - Innovation 1

Contract/Order Payment Clause Type of Payment Request 

Billing Instrument Supply Service Construction

Payment Office Allocation Method

One CLIN/ One ACRN PGI is driven by type of Billing Instrument PGI is not necessary

52.212-4 (Alt I), Contract Terms and 

Conditions—Commercial Items; 

52.216-7, Allowable Cost and 

Payment; and 52.232-7, Payments 

Under Time-and-Materials and 

Labor-Hour Contracts

Cost Voucher; BVN; SER

X X N/A

Line Item Specific proration. If there is more than one ACRN 

within a deliverable line 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. 

CLINS with more than one ACRN will be prorated across those 

ACRNS for that CLIN only. 

52.232-1, Payments Navy Shipbuilding Invoice 

(Fixed Price); DD250, 

invoice, 2in1, combo

X N/A 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. In the event of a 

deliverable line or deliverable subline item with two ACRNs with 

the same fiscal year, those amounts will be prorated to the 

available unliquidated funds for that year. CLINS with more than 

one ACRN will be paid using the ACRN with the oldest funds 

first, then onwards until completely expended/ disbursed.

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; Combo; 2in1

X X N/A

Line Item Specific proration. If there is more than one ACRN 

within a deliverable line 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. 

FFP CLINS with more than one ACRN will be prorated across 

those ACRNS for that CLIN only. 
New PGI Matrix, Cont.

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52.232-5, Payments Under FixedPrice Construction ContractsConstruction Payment 

Invoice; DD250, 2in1, 

combo

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. In the event of a 

deliverable line or deliverable subline item with two ACRNs with 

the same fiscal year, those amounts will be prorated to the 

available unliquidated funds for that year. CLINS with more than 

one ACRN will be paid using the ACRN with the oldest funds 

first, then onwards until completely expended/ disbursed.

52.232-16, 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. FFP FUNDS ONLY with 

more than one ACRN will be prorated across those ACRNS for 

that FFP CLIN only. 

52.232-29, Terms for Financing of 

Purchases of Commercial Items; 

52.232-30, Installment Payments 

for Commercial Items

Commercial Item 

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) 

and 32.1007(b)(2). Contracting Officer specifies CLINS and 

amount per ACRN
New PGI Matrix, Cont.

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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 32.207(b)(2) 

and 32.1007(b)(2). Contracting Officer specifies CLINS and 

amount per ACRN

252.232-7002, Progress Payments 

for Foreign Military Sales 

Acquisitions

Progress Payment* FMS

X X N/A

Allocate costs among line items and countries in a manner 

acceptable to the Administrative Contracting Officer. 

Administrative Contracting Officer specifies CLINs and amount 

per ACRN

*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 (FFP only) and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based 

payment, or commercial item financing).
New PGI Matrix Other (PGI-Other)

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Effective 12/1/17, new PGI instructions implemented. PGI is now determined by the 

type of payment request (i.e. Cost Voucher, Invoice, PBP, CIF, etc.).

It also provides PGI - Other. If none of the payment instructions identified in paragraph 

b2 of this section are appropriate, the contracting officer may insert other payment 

instructions, provided the other payment instructions -

(i) provide a significantly better reflection of how funds will be expended in support of 

contract performance: and

(ii) are agreed to by the payment office (DFAS) and the contract administration (DCMA) 

office. A copy of the agreement will be kept in the contract file. 

The MFR should only state how the implementation of PGI – Other will provide 

improved execution of funds over the standard PGI instructions (attached). This 

methodology of payment will be 100% manual on the DFAS side and will cost the 

service more money to process. DFAS requests special permission be obtained in 

writing from the FM to assume the cost of manual payment. 

No retroactive corrections will be made by DFAS. 
PGI Matrix Other (12) Approval Process

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• Procurement submits MFR request to dfas.dscc.jal.mbx.ap-mocas-pgi-other12@mail.mil

• DFAS will coordinate with DCMA review based upon criteria provided by OUSD(C) 

Scenario # Description Conclusion Rationale

1 Blanket Approval to use "Other" at the Programwide levelDisapproved Each contract stands on its own and must be specifically 

justified as to why the existing guidance is not sufficient.

2 Pay as Billed Disapproved Pay as billed does not meet intent of GAAP and Fiscal Law. 

Additionally, this payment method could be perceived by 

auditors and taxpayers as allowing the contracting community 

to determine execution of government funds. 

3 Oldest Funds First where all ACRNs on the CLIN 

are from the same Military Service/Defense 

Agency by fund type (WCF/GF)

Approved This approach still allows for proper matching of the charge to 

the activity that received the service/product with the 

application of payment to the corresponding entity.

4 Oldest Funds First where the CLIN is funded by 

multi-Military Service/Defense Agency ACRNS

Disapproved This scenario would result in inappropriate accounting—GAAP 

requires proper matching to the activity that received the 

service/product with the application of payment to the 

corresponding entity.

5 Pay as Directed multi-service funding Disapproved This scenario would result in inappropriate accounting—GAAP 

requires proper matching of receiving received the 

service/product with the application of payment to the 

corresponding entity.

6 Pay in accordance with contracting officer/DCAA 

approved billing

Approved This approach still allows for proper matching of the charge to 

the activity that received the service/product with the 

application of the payment to the corresponding entity.

• Final decision is provided via email to requestor

• Signed MFRs are attached to the contract/ modification to become part of the contractual documents

• All requests and responses are tracked via PGI Approval Tracking spreadsheet
Common Scenarios Encountered

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Old 

PGI

New 

PGI

1) Contract issued after 12/1/17 that requires a payment instruction but one is not cited

A. DFAS will issue CDR requiring reference to the new payment instruction matrix

2) Contract issued pre-12/1/17 with a CDR on it for not citing a payment instruction

A. Contract will be required to reference the new payment instruction matrix and invoices will 

be paid according to the prescribed allocation methodology for that invoice type.

3) Contract issued pre-12/1/17 that originally didn't require a payment instruction (i.e. was single 

funded and no financing) but was modified in such a way that a payment instruction is now required

A. Contract will be required to reference the new payment instruction matrix and invoices will 

be paid according to the prescribed allocation methodology for that invoice type.

4) Contract issued pre 12/1/17 that originally cited a previous payment instruction (1-11). Contracting 

Officer requests to modify the contract to change the payment instruction to a different clause under 

the old logic. 

A. These will be handled on a cases by case basis. While the new instructions should be used, 

DFAS will work with the ACO/PCO to determine best way forward.

5) BOA or IDIQ issued pre 12/1/17 originally cited a a previous payment instruction (1-11). 

A. SPIIN or PIID will follow pre 12/1/17 payment instruction as long as no variance from the 

payment instructions as cited in BOA or IDIQ