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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: November 14, 2001

SUBJECT: Federal Acquisition Regulation (FAR); Progress Payment Requests Under Indefinite-Delivery Contracts

SOURCE: Federal Register, November 14, 2001, Vol. 66, No. 220, page 57293

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that FAR 52.232-16, Progress Payments, be amended to require contractors, under indefinite-delivery indefinite-quantity (IDIQ) contracts, to account for and submit progress payment requests under individual orders as if each order constitutes a separate contract.

DATES: Comments on the proposed rule must be submitted no later than January 14, 2002.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405; e-mail to: farcase.2001-006@gsa.gov.

FOR FURTHER INFORMATION CONTACT: Jeremy Olson, 202-501-3221.

SUPPLEMENTAL INFORMATION: Paragraph (c) of FAR 32.503-5, Administration of Progress Payments, states "under indefinite-delivery contracts, the contracting officer should administer progress payments made under each individual order as if the order constituted a separate contract, unless agency procedures provide otherwise." This language recognizes that funds on IDIQ contracts are normally obligated on each individual order; that deliveries and contract performance, which factor into progress payment calculations, are monitored at the order level, as opposed to the basic contract level; and that progress payments normally are administered at the order level. However, there is no related language in FAR 52.232-16, Progress Payments.

This proposed rule would make the following changes to the FAR:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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