[Federal Register Volume 69, Number 174 (Thursday, September 9, 2004)]
[Page 54651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20398]



Contract Financing: Performance-Based Payments

AGENCY: Department of Defense (DoD).

ACTION: Request for public comments.


SUMMARY: The Director of Defense Procurement and Acquisition Policy 
(DPAP) is currently conducting an internal assessment regarding the use 
of performance-based payments as a method of financing for DoD 
contracts. As part of this assessment, DPAP would like to hear the 
views of interested parties on what they believe are potential areas 
for improving DoD's use of performance-based payments.

DATES: Submit written comments to the address shown below on or before 
October 25, 2004.

ADDRESSES: Submit comments to: Office of the Director, Defense 
Procurement and Acquisition Policy, Policy Directorate, ATTN: Mr. David 
Capitano, Room 3C838, 3000 Defense Pentagon, Washington, DC 20301-3000. 
Comments may also be submitted by fax at (703) 614-0719 (ATTN: Mr. 
David Capitano), or by e-mail at [email protected].

Directorate, by telephone at (703) 847-7486, or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Government policy is that performance-based 
payments are the preferred form of contract financing. In furtherance 
of this policy, the Director of Defense Procurement and Acquisition 
Policy is soliciting public input regarding actions (policy changes, 
training, etc.) DoD should undertake to--
    1. Increase the use of performance-based payments as the method of 
contract financing on DoD contracts (e.g., what should be done to 
increase the number of contracts that utilize performance-based 
payments); and
    2. Improve the efficiency of performance-based payments when used 
on DoD contracts (e.g., what should be done to improve the use of 
performance-based payments on those contracts that provide for such 
contract financing).
    It would be helpful, but not required, if respondents could also 
    1. A brief summary of their experience in using performance-based 
payments on DoD contracts; and
    2. What they believe to be the most important advantages and 
disadvantages that performance-based payments have with respect to 
progress payments.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 04-20398 Filed 9-8-04; 8:45 am]