Sec. 817. Pilot program to incentivize progress payments
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/bill/118/s/2226/pap/section-817·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Under Secretary of Defense for Acquisition and Sustainment shall establish and implement a pilot program to incentivize large business concerns awarded Department of Defense contracts to qualify for progress payments up to 10 percentage points higher than the standard progress payment rate. The Under Secretary for Acquisition and Sustainment shall establish clear and measurable criteria to provide for the payment to contractors of higher progress payments as described in subsection (a), including meeting one or more of the following criteria:
Adherence to delivery dates for contract end items and contract data requirement lists or compliance with the performance milestone schedule during the preceding fiscal year. The lack of any open level III or IV corrective action requests. Acceptability of the contractor's business systems without significant deficiencies. Meeting small business subcontracting goals during the preceding fiscal year. The Under Secretary for Acquisition and Sustainment shall submit to the Committees on Armed Services of the Senate and House of Representatives an annual report on the implementation of the pilot program established under subsection (a), including a comprehensive list of contractors and the contracts that received the increased progress payments.
In this section: The term standard progress payment rate refers to the rate of progress payments provided for under section 3804 of title 10, United States Code, and payable in accordance with the applicable provisions of the Federal Acquisition Regulation and the Defense Federal Acquisition Regulation Supplement. The term large business concerns means a business concern that exceeds the small business size code standards established by the Small Business Administration as set forth in part 121 of title 13, Code of Federal Regulations.
The authority to carry out the pilot program established under subsection
(a)shall terminate on January 1, 2026.