PGI 204.7108 Payment instructions

Section DFARS Procedures, Guidance, and Information

Facts

Citation
PGI 204.7108
Type
Section
Supplements
FAR Part 4 Administrative and Information Matters
Text as of
DFARS PGI Change May 7, 2026
Official text
acquisition.gov

Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this section.

Text

(a) Scope. This section applies to contracts and orders that are funded by multiple accounting classification reference number (ACRN) citations and—

(1) Include deliverable line items or deliverable subline items (see FAR 4.1005-1) that are funded by multiple ACRNs; or

(2) Authorize financing payments.

(b) For contracts and orders covered by this subpart—

(1) The contracting officer shall insert the table at paragraph (b)(2), or a link to the table at (b)(2) (https://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/current/PGI204_71.htm#payment_instructions) in Section G of the contract, or equivalent. When some, but not all, of the fixed-price line items in a contract are subject to contract financing payments, the contracting officer shall clearly identify to which line items the payment clause(s) included in Section I of the contract apply.

(2) The payment office shall allocate and record the amounts paid from the ACRNs in the contract using the table in this paragraph (b)(2) based on the type of payment request submitted (see DFARS 252.232-7006) and the type of effort identified by the Product Service Code for each deliverable line item or subline item (see FAR 4.1005-1).

For Government Use Only For Government Use Only For Government Use Only For Government Use Only For Government Use Only For Government Use Only
Contract/Order Payment Clause Type of Payment Request Supply Service Construction Payment OfficeAllocation Method
52.212-4 (Alt I), Contract Terms and Conditions—Commercial Products and Commercial Services;52.216-7, Allowable Cost and Payment;52.232-7, Payments Under Time-and-Materials and Labor-Hour Contracts Cost Voucher X X N/A Line item specific proration. If there is more than one ACRN within a deliverable contract line item, the funds will be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN on the line item billed.
52.232-1, Payments; 252.217-7007, Payments (vessel repair and alterations) Navy Shipbuilding Invoice (Fixed Price) X X N/A Line item specific by fiscal year. If there is more than one ACRN within a deliverable line or deliverable subline item, the funds will be allocated using the oldest funds first. In the event of a deliverable line or deliverable subline item with two or more ACRNs with the same fiscal year, those amounts will be prorated to the available unliquidated funds for that year.
52.232-1, Payments;52.232-2, Payments under Fixed-Price Research and Development Contracts;52.232-3, Payments under Personal Services Contracts;52.232-4, Payments under Transportation Contracts and Transportation-Related Services Contracts; and52.232-6, Payments under Communication Service Contracts with Common Carriers Invoice X X N/A Line item specific proration. If there is more than one ACRN within a deliverable line item or deliverable subline item, the funds will be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN on the deliverable line or deliverable subline item for which payment is requested.
52.232-5, Payments Under Fixed-Price Construction Contracts Construction and Facilities Management Invoice N/A N/A X Line item specific by fiscal year. If there is more than one ACRN within a deliverable line or deliverable subline item, the funds will be allocated using the oldest funds first. In the event of a deliverable line or deliverable subline item with two or more ACRNs with the same fiscal year, those amounts will be prorated to the available unliquidated funds for that year.
52.232-16, Progress Payments (excluding contracts with multiple lot progress payments) Progress Payment* X X N/A Contract-wide proration. Funds shall be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN. Progress payments are considered contract level financing, and the “contract price” shall reflect the fixed-price portion of the contract per FAR 32.501-3.
52.232-16, Progress Payments252.232-7018, Progress Payments- Multiple Lots Progress Payment* X X N/A Lot-wide proration (applies to lots specifically identified in the contract).If there is more than one ACRN within a lot, the funds will be allocated in the same proportion as the amount of funding currently unliquidated for each ACRN on the lot for which payment is requested.See paragraph (c) of this section for multiple lot CLIN structure.
52.232-29, Terms for Financing of Purchases of Commercial Products and Commercial Services;;52.232-30, Installment Payments for Commercial Products and Commercial Services Commercial Product and Commercial Service; Financing* X X N/A Specified in approved payment. The contracting officer shall specify the amount to be paid and the account(s) to be charged for each payment approval in accordance with FAR 32.207(b)(2).
52.232-32, Performance-Based Payments Performance-Based Payments* X X N/A Specified in approved payment. The contracting officer shall specify the amount to be paid and the account(s) to be charged for each payment approval in accordance with FAR 32.1007(b)(2).
252.232-7002, Progress Payments for Foreign Military Sales Acquisitions Progress Payment* X X N/A Allocate costs among line items and countries in a manner acceptable to the Administrative Contracting Officer.
*Liquidation of Financing Payments. Liquidation will be applied by the payment office against those ACRNs which are identified by the payment instructions for the delivery payment and in keeping with the liquidation provision of the applicable contract financing clause (i.e., progress payment, performance-based payment, or commercial product and commercial service financing).

(c) The following example illustrates a contract with multiple lots. Note that each lot is specifically identified in Section B of the Schedule in the event lot-wide proration will be used in accordance with DFARS 252.232-7018, Progress Payments-Multiple Lots. Note also that cost-reimbursement line items are not included in the request for progress payment.

Section B – Supplies or services and prices/costs. ITEM NO. SUPPLIES/SERVICE QUANTITY UNIT UNIT PRICE AMOUNT Lot 1 (FYXX) 0001 Lot 1 ABC Vehicle (FFP) 0001AA Lot 1 ABC Vehicles, Army (Procurement) 19 EA $300,000 $5,700,000 0001AB Lot 1 ABC Vehicles, Marine Corps (Procurement) 11 EA $300,000 $3,300,000 0002 Data for Item 0001 NSP 0003 Lot 1 Initial Spares (FFP) 0003AA Lot 1 ABC Vehicle Initial Spares Army (See Exhibit C, $456,000) (Procurement) 0003AB Lot 1 ABC Vehicle Initial Spares Marine Corps (See Exhibit D, $264,000) (Procurement) 0004 Lot 1 System Engineering and Program Management (CPFF) 1 Lot Est. Cost: $167,400 Fixed Fee: $12,600 OPTION ITEMS Lot 2 (FYXY) 1001 Lot 2 ABC Vehicles (FFP) 1001AA Lot 2 ABC Vehicles, Army (Procurement) 25 EA $303,000 $7,575,000 1001AB Lot 2 ABC Vehicles, Marine Corps (Procurement) 15 EA $307,500 $4,545,000 1002 Data for Item 1001 NSP 1003 Lot 2 Initial Spares (FFP) 1003AA Lot 2 ABC Vehicle Initial Spares Army (See Exhibit E, $606,000) (Procurement) 1003AB Lot 2 ABC Vehicle Initial Spares Marine Corps (See Exhibit F, $363,600) (Procurement) 1004 Lot 2 System Engineering and Program Management (CPFF) 1 Lot Est. Cost: $225,432 Fixed Fee: $16,968

Sections cited

Quick answers

What is PGI 204.7108?

PGI 204.7108 is a section of the DFARS Procedures, Guidance, and Information, titled "Payment instructions".

Are changes to PGI 204.7108 proposed?

No proposed rule from the last 3 years is waiting on a final rule.

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