Attachment 1 - Performance Based Milestones.pdf

Performance Based Payments Milestones Applicable to CLIN 0001

Events Severable/ Cumulative

Percent per

SLIN

Total Value for SLIN

TBD ($ TBD

per unit

(QTY TBD) /

$ TBD total)

Milestone Completion Verification Method

Milestone 1:

90% of Material Line Items Ordered

Severable 20%

No more than $ TBD total ($ TBD per unit)

Contractor provides internal report to Government Point of Contact (POC) which provides proof that material was ordered (Purchase Order (PO) number(s), values, and date issued).

Milestone is complete if Government

POC accepts the report.

Milestone 2:

50% of Material Line Items Received

Cumulative

– based on completion of Milestone

15%

Cumulative Payment, no more than

$ TBD total ($ TBD per unit)

Contractor provides internal report to Government POC which proves that the material was received against the

PO(s) that were placed.

Milestone is complete if Government

POC accepts the report.

Milestone 3:

90% of Material Line Items Received

Cumulative

– based on completion of Milestones 1

& 2

15%

Cumulative Payment, no more than

$ TBD total ($ TBD per unit)

Contractor provides internal report to Government POC which proves that the material was received against the

PO(s) that were placed.

Milestone is complete if Government

POC accepts the report.

TOTAL 50%

$ TBD total ($ TBD per unit)

NOTE 1

The remaining 50% may be invoiced after inspection and acceptance of each unit. The payments for the units under SLIN(s) TBD shall not exceed 50% of the unit price if payment is made per the schedule above.

NOTE 2

Performance Based Payment events can be of two kinds: severable (i.e., stand-alone) or cumulative (i.e., dependent):

• Severable events do not require the accomplishment of any other events.

• Cumulative events require the prior or concurrent completion of other events in order to be successfully accomplished.

NOTE 3

Contractor Performance Based Payment requests may not be submitted more often than monthly, as the Defense Finance and Accounting Service (DFAS) will only make one payment in a month. This does not mean, however, that a monthly payment request cannot cover payment for more than one payment event. Payment requests must clearly identify the event or events covered by the monthly submission and must refer to the applicable contract provision so that the amount to be paid can be unambiguously determined.

NOTE 4

This is a generic schedule. TBD fields will be filled in at the delivery order level.