106450 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

and the facts found indicate no significant 

impact (for example, refueling sites are not 

on top of aquifers, nesting areas, graves, 

sacred sites, etc.). These are examples to 

show the utility of and need to identify 

actual place-based environmental issues 

rather than compiling lists of environmental 

resources not at issue].’’ 

Proposed Action and Alternatives 

The agency should list and briefly describe 

its proposed action and reasonable 

alternatives that meet the purpose and need. 

The agency must use its discretion to ensure 

the number and reasonable range of 

alternatives is reasoned and not arbitrary or 

capricious. The purpose and need for the 

proposed action and its environmental effects 

should focus the alternatives. For example, 

the need to use existing infrastructure 

necessary to support the facility is a reasoned 

basis for focusing on a discrete number of 

alternatives. 

When there is no unresolved conflict 

concerning alternative uses of available 

resources with respect to the proposed action 

based on input from interested parties, the 

agency can consider the proposed action and 

proceed without consideration of additional 

alternatives. Otherwise, the agency must 

identify reasonable alternatives that meet the 

action’s purpose and need, consistent with 

section 102(2)(H) of NEPA. 

Environmental Effects of the Proposed Action 

and Alternatives 

The agency must describe the 

environmental effects of its proposed action 

and each alternative. 40 CFR 1501.5(c)(2)(iii). 

The description should provide enough 

information to support a determination to 

either prepare an EIS or a finding of no 

significant impact. 

The agency should focus on whether the 

action would significantly affect the quality 

of the human environment. The agency 

should follow the CEQ NEPA regulations in 

considering whether the effects of a proposed 

action are significant. See 40 CFR 1501.3(d). 

Agency NEPA contacts and contacts at 

resource agencies can assist in this effort. 

Tailor the length of the discussion to the 

complexity of each issue. Focus on those 

human and natural environment issues 

where effects are a concern. Telephone or 

email discussions with State, Tribal, and 

local governments and agencies and other 

Federal agencies that operate in the area will 

help focus those issues. 

The agency must discuss the effects of each 

alternative and may discuss those effects 

together in a comparative description or 

discuss each alternative separately. The 

agency should use the approach that will be 

most effective in the time available. The 

agency may contrast the effects of the 

proposed action and alternatives with the 

current condition and expected future 

condition in the absence of the action. This 

constitutes consideration of a no action 

alternative as well as demonstrating the need 

for the action. 

The agency should incorporate by 

reference data, inventories, other 

information, and analyses relied on in the 

EA. See 40 CFR 1501.12. CEQ encourages the 

use of digital references, such as hyperlinks. 

This information must be reasonably 

available for review by potentially interested 

persons. For example, include relevant 

existing programmatic agreements and 

generally accepted best management 

practices. 

The agency should be clear and concise 

about its conclusions and their bases. 

List of Agencies and Persons Consulted 

The agency must involve the public, State, 

Tribal, and local governments, relevant 

agencies, and any applicants, to the extent 

practicable in preparing EAs, and list the 

agencies and persons consulted. 40 CFR 

1501.5(c)(3) and 1501.5(f). For example, 

include the people, offices, and agencies that 

the agency coordinated with to ensure that 

the location of the action did not cause 

unintentionally an adverse effect. Also 

include information about individuals 

consulted to comply with substantive 

environmental requirements and regulations, 

for example: the Clean Water Act, the 

National Historic Preservation Act, and the 

Endangered Species Act (ESA). Note that the 

ESA emergency provisions at 50 CFR 402.05 

may be applicable to the proposed action. 

Authority: 42 U.S.C. 4321–4347; 42 

U.S.C. 4371–4375. 

Brenda Mallory, 

Chair. 

[FR Doc. 2024–30675 Filed 12–27–24; 8:45 am] 

BILLING CODE 3325–FC–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

[Docket Number DARS–2024–0038] 

Department of Defense Progress 

Payment Incentive Pilot 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Request for information. 

SUMMARY: DoD is seeking public input to 

inform the implementation of a section 

of the National Defense Authorization 

Act for Fiscal Year 2024 that authorizes 

DoD to establish a pilot program to 

incentivize performance for specific, 

measurable criteria under approved 

contracts by increasing the customary 

progress payment rate. 

DATES: DoD will consider all comments 

received by January 29, 2025. 

ADDRESSES: Submit comments to the 

questions provided below, using either 

of the following methods: 

Æ Federal eRulemaking Portal: 

https://www.regulations.gov. Search for 

‘‘Docket Number DARS–2024–0038.’’ 

Select ‘‘Comment’’ and follow the 

instructions to submit a comment. 

Please include your name, company 

name (if any), and ‘‘Docket Number 

DARS–2024–0038’’ on any attached 

document(s). 

Æ Email: osd.pentagon.ousd-as.mbx.dpc-pcf@mail.mil. Include ‘‘DoD 

Progress Payment Incentive Pilot’’ in the 

subject line of the message. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check https://

www.regulations.gov, approximately 

two to three days after submission to 

verify posting. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Sara Higgins, telephone 937–200–4020. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 874 of the National Defense 

Authorization Act for Fiscal Year 2024 

authorizes the Under Secretary of 

Defense for Acquisition and 

Sustainment to establish and implement 

a progress payment pilot program to 

incentivize contractor performance on a 

contract-by-contract basis. By statute, 

the incentive criteria must be clear and 

measurable, and contractor participation 

must be voluntary. 

This notice requests comments and 

information from the public on DoD’s 

possible implementation of the pilot 

program, in accordance with section 

874. DoD is particularly interested in 

comments and information from 

companies currently in the Defense 

Industrial Base. 

B. Possible Implementation 

DoD is planning to focus the Progress 

Payment Incentive Pilot (PPIP) on 

payment time to subcontractors in order 

to improve cash flow throughout the 

supply base. This is a key interest area 

highlighted in the 2023 Defense 

Contract Finance Study, available at 

https://www.acq.osd.mil/asda/dpc/pcf/ 

finance-study.html. 

DoD is particularly interested in 

comments and information from all 

business sizes with regard to DoD’s 

notional eligibility and incentive 

criteria, and supporting documentation 

concept, especially the following: 

1. Eligibility Criteria 

Section 874 authorizes an increase of 

up to 10 percentage points higher than 

the current customary progress payment 

rate (80 percent for large businesses) for 

contractor performance against clear, 

measurable criteria on a contract-bycontract basis. To be eligible for the 

PPIP, a participant must be eligible for 

customary progress payments, and their 


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Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106451 

participation must be voluntary. 

Notionally, the participant must be 

performing under a new sole-source, 

noncommercial, definitized contract or 

order. The progress payment rate for 

small entities has been temporarily 

increased to 95 percent, which is 5 

percentage points higher than the 

maximimum incentive rate eligible to be 

earned under the authority of section 

874. Therefore, the pilot program will be 

open only to other than small entities. 

For inclusion in the pilot program, 

DoD is planning to require contract 

actions to be nominated by the 

cognizant contracting officer and 

approved by the Director, Price, Cost 

and Finance, Defense Pricing, 

Contracting, and Acquisition Policy 

during the preaward phase of the 

acquisition, since the extent of contract 

financing provided by the Government 

is required to be a consideration in price 

negotiations after contract award. It is 

also anticipated that the nominated 

contract or order must have a 

performance period of no more than 

three years to ensure that all 

performance, including options and 

potential new work, will be completed 

before the pilot program’s sunset date. 

DoD anticipates requiring that the bill 

of material, excluding material from 

affiliated concerns and indirect costs, 

will constitute at least 25 percent of the 

nominated contract or order’s estimated 

value to ensure the incentive benefits 

the supply chain and to assess the 

efficacy of using an increased progress 

payment rate as an incentive. 

To optimize pilot program 

participation and to collect insights 

from multiple sources, DoD plans to 

approve only one contract per parent 

entity (including all divisions, business 

segments, subsidiaries, etc.). 

2. Incentive Criteria 

DoD anticipates structuring the 

progress payment incentive as follows, 

with a focus on incentivizing payment 

time to the supply base: 

a. The maximum incentive (a progress 

payment rate of 90 percent in lieu of the 

customary 80 percent rate for large 

businesses) may be earned if more than 

95 percent of the cumulative invoice 

dollars have been or will be paid within 

20 calendar days of receipt of 

subcontract invoices. 

b. A progress payment rate of 85 

percent may be earned if more than 85 

percent but less than or equal to 95 

percent of the cumulative invoice 

dollars have been or will be paid within 

20 calendar days of receipt of 

subcontract invoices. 

c. If 85 percent or less of the 

cumulative invoice dollars have been or 

will be paid within 20 calendar days of 

receipt of subcontract invoices, no 

incentive is earned, and the customary 

large business progress payment rate of 

80 percent will be used. 

d. DoD plans to reassess the progress 

payment rate with each contractor 

request for progress payment, based on 

the reported payment time for 

cumulative subcontract invoice dollars. 

If the contractor’s performance against 

the incentive criterion merits an 

increase or decrease to the progress 

payment rate currently on contract, it is 

anticipated that the rate will be changed 

by a unilateral contract modification. 

e. If the progress payment rate on the 

contract is decreased based on the 

contractor’s cumulative performance 

against the incentive criterion, this may 

result in an overpayment status. For 

purposes of overpayments arising in this 

manner, the expectation is not to issue 

a demand for repayment, but to 

withhold additional progress payments 

until either— 

(1) The progress payment rate is 

increased as a result of the contractor’s 

performance against the incentive 

criterion; or 

(2) The incurred cost increases to the 

point that the total incurred cost 

multiplied by the current progress 

payment rate is greater than the amount 

of progress payments already paid to the 

contractor. 

3. Supporting Documentation Concept 

DoD plans to measure contractor 

performance against incentive criteria 

through the use of a Governmentprovided spreadsheet, which the PPIP 

participant will submit as an attachment 

to each SF 1443, Contractor’s Request 

for Progress Payment. It is envisioned 

that the completed spreadsheet will list 

each subcontract delivery invoice 

reflected in the incurred cost claimed in 

the progress payment request and 

include the following information at a 

minimum: 

Æ Subcontractor, supplier, or vendor 

name; 

Æ Subcontract or purchase order 

number; part number; description of 

part or service; 

Æ Subcontract invoice number and 

any tracking number affixed by the 

prime; 

Æ Subcontract invoice date; 

Æ Subcontract invoice amount; 

Æ Actual or anticipated date of 

invoice payment; 

Æ Amount of payment; 

Æ Calculated payment time (date of 

payment minus date of invoice) for the 

invoice; and 

Æ Any unpaid amount on the invoice. 

The spreadsheet will calculate the 

percentage of cumulative subcontract 

invoice dollars paid within the 

established payment time criterion. It is 

planned that the PPIP participant will 

update and mark new and actual 

payment data with each progress 

payment request. 

It is anticipated that the PPIP 

participant will be required to provide 

any additional documentation required 

by the contracting officer to support its 

claimed progress against incentive 

criteria. DoD plans for the Defense 

Contract Audit Agency to audit PPIP 

participants’ claimed subcontract 

payment timing semi-annually. 

Authority: DoD Instruction 5000.35, 

Defense Acquisition Regulations (DAR) 

System. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

[FR Doc. 2024–30947 Filed 12–27–24; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID: DoD–2024–OS–0023] 

Submission for OMB Review; 

Comment Request 

AGENCY: The Under Secretary of Defense 

for Personnel and Readiness 

(OUSD(P&R)), Department of Defense 

(DoD). 

ACTION: 30-Day information collection 

notice. 

SUMMARY: The DoD has submitted to the 

Office of Management and Budget 

(OMB) for clearance the following 

proposal for collection of information 

under the provisions of the Paperwork 

Reduction Act. 

DATES: Consideration will be given to all 

comments received by January 29, 2025. 

ADDRESSES: Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

FOR FURTHER INFORMATION CONTACT: 

Reginald Lucas, (571) 372–7574 or 

whs.mc-alex.esd.mbx.dd-dodinformation-collections@mail.mil. 

SUPPLEMENTARY INFORMATION: 

Title; Associated Form; and OMB 

Number: User Testing of the Financial 

Readiness Website; OMB Control 

Number 0704–0657. 

Type of Request: Revision. 


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