97-11296. Federal Acquisition Regulation; Progress Payments

[Federal Register Volume 62, Number 84 (Thursday, May 1, 1997)]
[Proposed Rules]
[Pages 23740-23741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11296]


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DEPARTMENT OF DEFENSE

48 CFR Parts 32 and 52


Federal Acquisition Regulation; Progress Payments

AGENCY: Department of Defense.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: Comments are solicited from both government and industry 
personnel on how Federal Acquisition Regulation (FAR) Subpart 32.5, 
Progress Payments Based on Costs, the clause at FAR 52.232-16, Progress 
Payments, and Standard Form 1443, Contractor's Request For Progress 
Payment, can be revised to result in a simplified and streamlined 
process of applying for and administering progress payments. The 
Director of Defense Procurement is sponsoring an initiative to review 
existing forms, procedures, and provisions related to progress 
payments. Regulatory requirements pertaining to progress payments that 
are not required by statute, required to ensure adequately standardized 
government business practices, or required to protect the public 
interest will be considered for revision or elimination. Innovative 
means of simplifying the process of contractor requests for progress 
payments and the subsequent government administration of progress 
payments will be considered for incorporation into the regulation.
    Comments may be submitted in two formats: (1) By letter to the 
address below, or (2) by electronic response on the Director of Defense 
Procurement Office of Cost, Pricing, and Finance Internet Home Page: 
http://www.acq.osd.mil/dp/cpf. Comments should include (1) An 
identification of the existing regulation, form, or procedure, (2) a 
proposed revision thereto, and (3) a supporting rationale for the 
proposed revision.

DATES: Comments are due on or before May 30, 1997.


[[Page 23741]]


ADDRESSES: Send comments to the Chair, Progress Payments Rewrite Team, 
Mr. Richard Brown, PDUSD(A&T)DP/CPF, Room 3C800, Defense Pentagon, 
Washington, DC 20301-3060.

FOR FURTHER INFORMATION CONTACT: Mr. Richard Brown, by telephone at 
[phone], by FAX at [phone], or by e-mail at 
[e-mail].

Background

    The Director of Defense Procurement, Department of Defense, has 
established a special interagency team, with participants from the 
Office of the Under Secretary of Defense (Comptroller), the Military 
Departments, the Defense Logistics Agency, the Defense Contract Audit 
Agency, the Defense Finance and Accounting Service, the Department of 
Energy, and the National Aeronautics and Space Administration, that 
will review and rewrite FAR Part 32 and Part 52 provisions regarding 
Progress Payments to make them easier to understand and to minimize the 
burdens imposed on contractors and contracting officers. The Director 
of Defense Procurement will provide a forum for an exchange of ideas 
and information with government and industry personnel by holding at 
least one public meeting, soliciting public comments, and publishing 
notices of public meetings in the Federal Register. Discussion will 
focus on draft revisions of FAR Part 32, Subpart 32.5, Progress 
Payments Based on Costs, and associated contract clauses and forms. In 
addition to the overall simplification of the progress payments 
process, the rewrite team will also consider changes needed in the 
progress payments provisions to address the inclusion of performance-
based payments and commercial financing payments to subcontractors as 
part of a contractor's request for progress payments. The rewrite team 
will also address whether indirect costs for supplies and services 
purchased by the contractor are eligible for progress payment 
reimbursement before the contractor has paid the direct costs that are 
burdened by those indirect costs and included the direct costs in 
progress payment requests.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 97-11296 Filed 4-30-97; 8:45 am]
BILLING CODE 5000-04-M