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Procurement Information Circular


July 17, 2000

PROGRESS PAYMENTS UNDER FIXED-PRICE CONSTRUCTION CONTRACTS

PURPOSE:  To provide guidance to all NASA Centers on proper procedures for processing contractor requests for progress payments under fixed-price construction contracts.

BACKGROUND:  As a result of investigative and assessment activities by the NASA Inspector General, it was concluded that additional guidance should be provided by the Office of Procurement to NASA Procurement Offices.  This guidance is being provided to enhance our overall compliance with FAR Part 32 and NFS Part 1832.

GUIDANCE:  In certain instances, contracting officers have failed to ensure that prime contractors submit requests for progress payments in compliance with FAR clause 52.232-5 "Payments Under Fixed-Price Construction Contracts" and FAR 32.503-1 "Contractor requests".  Failure often is a result of contracting officers accepting contractor's requests for payment that do not include the required data.

It is essential for NASA to obtain detailed progress payment information for effective contract administration, audit, and investigative purposes.  All fixed-price construction contracts will include FAR clause 52.232-5 as prescribed in FAR 32.111(a)(5). This clause lists specific information that must be submitted as part of a contractor's request for progress payments, including supporting data listed in paragraph (b)(1). In addition, a contractor's request for progress payments based on costs must also include Standard Form (SF) 1443 "Contractor's Request for Progress Payment" as prescribed in FAR 32.503-1. In all cases, sufficient information must be received to substantiate that the work accomplished meets the requirements established in  the contract, and can be the basis of the contracting officer's approval of a contractor's request for progress payments.

In contracts where progress payments will be based on costs, NFS clause 1852.232-82, "Submission of Request for Progress Payments," may be included to advise contractors of the requirements for submitting the SF 1443. This clause may be modified in accordance with 1832.502-470.

EFFECTIVE DATE:  This PIC is effective as dated and shall remain in effect until canceled or superseded.

HEADQUARTERS CONTACT: Rich Kall, Code HK, (202) 358-0459, email: rkall@hq.nasa.gov.
 
 
 
R. Scott Thompson
Director, Contract Management Division