The more accurate your invoices the more quickly you will be paid, so it is important to understand the payment process thoroughly. Prompt payment on all contracts serves the best interest of both the contractor and the government. Under certain circumstances if prompt payment is not accomplished by the government, you can submit a request for interest payments. Under fixed-price contracts, the method of payment can vary with the dollar value of the contract. For relatively small contracts with a single item of work, you will generally be paid the total contract price in one lump sum.
Payment is made after the government accepts delivery.
For larger contracts with many items, you can invoice and receive partial payments. Larger fixed-price contracts and subcontracts where the first delivery is several months after award may recognize your need for working capital. These contracts may contain a clause which will allow you to obtain progress payments based upon costs incurred as work progresses under the contract. Because progress payments are based on work that is not completed, you must repay them if you fail to complete the work. To protect its interest the government takes title to your work in process for which progress payments have been made.