Source: https://www.law.cornell.edu/cfr/text/48/32.1004
Timestamp: 2018-03-23 15:28:25
Document Index: 358631026

Matched Legal Cases: ['art 32', 'art 32', 'art 32', 'arts 4', 'arts 12', 'arts 12', 'arts 2', 'arts 1', 'arts 16', 'arts 2']

48 CFR 32.1004 - Procedures. | US Law | LII / Legal Information Institute
CFR › Title 48 › Chapter 1 › Subchapter E › Part 32 › Subpart 32.10 › Section 32.1004
48 CFR 32.1004 - Procedures.
32.1004 Procedures.
Performance-based payments may be made either on a whole contract or on a deliverable item basis, unless otherwise prescribed by agency regulations. Financing payments to be made on a whole contract basis are applicable to the entire contract, and not to specific deliverable items. Financing payments to be made on a deliverable item basis are applicable to a specific individual deliverable item. (A deliverable item for these purposes is a separate item with a distinct unit price. Thus, a line item for 10 airplanes, with a unit price of $1,000,000 each, has 10 deliverable items-the separate planes. A line item for 1 lot of 10 airplanes, with a lot price of $10,000,000, has only one deliverable item-the lot.)
(a)Establishing performance bases.
(1) The basis for performance-based payments may be either specifically described events (e.g., milestones) or some measurable criterion of performance. Each event or performance criterion that will trigger a finance payment shall be an integral and necessary part of contract performance and shall be identified in the contract, along with a description of what constitutes successful performance of the event or attainment of the performance criterion. The signing of contracts or modifications, the exercise of options, the passage of time, or other such occurrences do not represent meaningful efforts or actions and shall not be identified as events or criteria for performance-based payments. An event need not be a critical event in order to trigger a payment, but the Government must be able to readily verify successful performance of each such event or performance criterion.
(2) Events or criteria may be either severable or cumulative. The successful completion of a severable event or criterion is independent of the accomplishment of any other event or criterion. Conversely, the successful accomplishment of a cumulative event or criterion is dependent upon the previous accomplishment of another event. A contract may provide for more than one series of severable and/or cumulative performance events or criteria performed in parallel. The contracting officer shall include the following in the contract:
(i) The contract shall not permit payment for a cumulative event or criterion until the dependent event or criterion has been successfully completed.
(ii) The contract shall specifically identify severable events or criteria.
(iii) The contract shall specifically identify cumulative events or criteria and identify which events or criteria are preconditions for the successful achievement of each event or criterion.
(iv) Because performance-based payments are contract financing, events or criteria shall not serve as a vehicle to reward the contractor for completion of performance levels over and above what is required for successful completion of the contract.
(v) If payment of performance-based finance amounts is on a deliverable item basis, each event or performance criterion shall be part of the performance necessary for that deliverable item and shall be identified to a specific line item or subline item.
(b)Establishing performance-based finance payment amounts.
(1) The contracting officer shall establish a complete, fully defined schedule of events or performance criteria and payment amounts when negotiating contract terms. If a contract action significantly affects the price, or event or performance criterion, the contracting officer responsible for pricing the contract modification shall adjust the performance-based payment schedule appropriately.
(2) Total performance-based payments shall -
(i) Reflect prudent contract financing provided only to the extent needed for contract performance (see 32.104(a)); and
(ii) Not exceed 90 percent of the contract price if on a whole contract basis, or 90 percent of the delivery item price if on a delivery item basis.
(3) The contract shall specifically state the amount of each performance-based payment either as a dollar amount or as a percentage of a specifically identified price (e.g., contract price or unit price of the deliverable item). The payment of contract financing has a cost to the Government in terms of interest paid by the Treasury to borrow funds to make the payment. Because the contracting officer has wide discretion as to the timing and amount of the performance-based payments, the contracting officer shall ensure that -
(i) The total contract price is fair and reasonable, all factors considered; and
(ii) Performance-based payment amounts are commensurate with the value of the performance event or performance criterion and are not expected to result in an unreasonably low or negative level of contractor investment in the contract. To confirm sufficient investment, the contracting officer may request expenditure profile information from offerors, but only if other information in the proposal, or information otherwise available to the contracting officer, is expected to be insufficient.
(4) Unless agency procedures prescribe the bases for establishing performance-based payment amounts, contracting officers may establish them on any rational basis, including (but not limited to) -
(i) Engineering estimates of stages of completion;
(ii) Engineering estimates of hours or other measures of effort to be expended in performance of an event or achievement of a performance criterion; or
(iii) The estimated projected cost of performance of particular events.
(5) When subsequent contract modifications are issued, the contracting officer shall adjust the performance-based payment schedule as necessary to reflect the actions required by those contract modifications.
(c)Instructions for multiple appropriations. If there is more than one appropriation account (or subaccount) funding payments on the contract, the contracting officer shall provide instructions to the Government payment office for distribution of financing payments to the respective funds accounts. Distribution instructions shall be consistent with the contract's liquidation provisions.
(d)Liquidating performance-based finance payments. Performance-based amounts shall be liquidated by deducting a percentage or a designated dollar amount from the delivery payments. The contracting officer shall specify the liquidation rate or designated dollar amount in the contract. The method of liquidation shall ensure complete liquidation no later than final payment.
(1) If the contracting officer establishes the performance-based payments on a delivery item basis, the liquidation amount for each line item is the percent of that delivery item price that was previously paid under performance-based finance payments or the designated dollar amount.
(2) If the performance-based finance payments are on a whole contract basis, liquidation is by predesignated liquidation amounts or liquidation percentages.
(e)Competitive negotiated solicitations.
(1) If a solicitation requests offerors to propose performance-based payments, the solicitation shall specify -
(i) What, if any, terms shall be included in all offers; and
(ii) The extent to which and how offeror-proposed performance-based payment terms will be evaluated. Unless agencies prescribe other evaluation procedures, if the contracting officer anticipates that the cost of providing performance-based payments would have a significant impact on determining the best value offer, the solicitation should state that the evaluation of the offeror's proposed prices will include an adjustment to reflect the estimated cost to the Government of providing each offeror's proposed performance-based payments (see Alternate I to the provision at 52.232-28).
(2) The contracting officer shall -
(i) Review the proposed terms to ensure they comply with this section; and
(ii) Use the adjustment method at 32.205(c) if the price is to be adjusted for evaluation purposes in accordance with paragraph (e)(1)(ii) of this section.
[ 72 FR 73220, Dec. 26, 2007, as amended at 82 FR 4714, Jan. 13, 2017]
Title 48 published on 20-Nov-2017 05:26
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 48 CFR Part 32 after this date.
79 FR 43590 - Federal Acquisition Regulation; Technical Amendments
FR Doc. 2014-17501
Docket No. 2014-0053
FAC 2005-76
Effective: July 25, 2014.
48 CFR Parts 4 and 32
2013-12-31; vol. 78 # 251 - Tuesday, December 31, 2013
78 FR 80382 - Federal Acquisition Regulation; Terms of Service and Open-Ended Indemnification and Unenforceability of Unauthorized Obligations
FR Doc. 2013-31150
RIN 9000-AM45
Docket No. 2013-0005, Sequence 1
FAC 2005-72
Effective: December 31, 2013.
48 CFR Parts 12, 13, 32, 43, and 52
DoD, GSA, and NASA have adopted as final, without change, an interim rule amending the Federal Acquisition Regulation (FAR) to address concerns raised in an opinion from the U.S. Department of Justice (DOJ) Office of Legal Counsel (OLC) involving the use of unrestricted, open-ended indemnification clauses in acquisitions for social media applications.
78 FR 70477 - Federal Acquisition Regulation; Accelerated Payments to Small Business Subcontractors
FR Doc. 2013-28053
RIN 9000-AM37
FAR Case 2012-031
FAC 2005-71
Docket No. 2012-0031, Sequence No. 1
Effective: December 26, 2013.
48 CFR Parts 12, 32, and 52
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement the policy provided by Office of Management and Budget (OMB) Memoranda M-12-16, dated July 11, 2012, and M-13-15, dated July 11, 2013, by incorporating a new clause to provide accelerated payments to small business subcontractors.
2013-06-21; vol. 78 # 120 - Friday, June 21, 2013
78 FR 37676 - Federal Acquisition Regulation; System for Award Management Name Change, Phase 1 Implementation
FR Doc. 2013-14612
RIN 9000-AM51
FAR Case 2012-033
Docket No. 2012-0033, Sequence 1
Effective Date: July 22, 2013.
48 CFR Parts 2, 4, 8, 9, 12, 13, 16, 17, 18, 19, 22, 25, 26, 28, 32, 44, and 52
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to reflect the joining of the Central Contractor Registration (CCR), Online Representations and Certification Application (ORCA), and Excluded Parties List System (EPLS) databases into the System for Award Management (SAM) database.
78 FR 37686 - Federal Acquisition Regulation; Terms of Service and Open-Ended Indemnification, and Unenforceability of Unauthorized Obligations
FR Doc. 2013-14614
Effective Date: June 21, 2013. Comment Date: Interested parties should submit written comments to the Regulatory Secretariat at one of the addresses shown below on or before August 20, 2013 to be considered in the formation of the final rule.
2012-12-19; vol. 77 # 244 - Wednesday, December 19, 2012
FR Doc. 2012-30550
Docket No. 2012-0031, Sequence 1
Interested parties should submit written comments to the Regulatory Secretariat at one of the addresses shown below on or before February 19, 2013 to be considered in the formation of the final rule.
DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement the temporary policy provided by Office of Management and Budget (OMB) Policy Memorandum M-12-16, dated July 11, 2012, by adding a new clause to provide for the accelerated payments to small business subcontractors.
2012-11-20; vol. 77 # 224 - Tuesday, November 20, 2012
FR Doc. 2012-27904
RIN 9000-AL99
FAC 2005-62
FAR Case 2010-014
Docket No. 2010-0014, Sequence 01
Effective: December 20, 2012.
48 CFR Parts 1, 4, 13, 19, 32, and 52
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to limit the use of generic substitutes instead of Data Universal Numbering System (DUNS) numbers, and update the policies and procedures associated with reporting in the Federal Procurement Data System (FPDS). Additionally, this final rule changes the clauses requiring contractor registration in the Central Contractor Registration (CCR) database and DUNS number reporting.
77 FR 44059 - Federal Acquisition Regulation; Payments Under Time-and-Materials and Labor-Hour Contracts
FR Doc. 2012-17727
RIN 9000-AM01
FAR Case 2011-003
Effective Date: August 27, 2012.
48 CFR Parts 16, 32, and 52
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to make necessary revisions to accommodate the authorization to use time-and-materials and labor-hour contract payment requirements.
77 FR 12937 - Federal Acquisition Regulation; Government Property
FR Doc. 2012-4499
RIN 9000-AL95
FAR Case 2010-009
Docket No. 2010-0009, Sequence 1
48 CFR Parts 2, 31, 32, 45, 49, 51, 52, and 53
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to clarify reporting, reutilization, and disposal of Government property.
48 CFR 32.1005 — Solicitation Provision and Contract Clause.
48 CFR 32.1007 — Administration and Payment of Performance-Based Payments.
48 CFR 215.404-71-3 — Contract Type Risk and Working Capital Adjustment.
48 CFR 52.232-28 — Invitation to Propose Performance-Based Payments.
48 CFR 32.110 — Payment of Subcontractors Under Cost-Reimbursement Prime Contracts.