FAR 32.501-1 Customary progress payment rates
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 32.501-1
- Type
- Subsection
- Last amended
- 87 FR 73894 Effective Dec 30, 2022
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) The customary progress payment rate is 80 percent, applicable to the total costs of performing the contract. The customary rate for contracts with small business concerns is 85 percent.
(b) The contracting officer must-
(1) Consider any rate higher than those permitted in paragraph (a) of this section an unusual progress payment; and
(2) Not include a higher rate in a contract unless advance agency approval is obtained as prescribed in 32.501-2.
(c) When advance payments and progress payments are authorized under the same contract, the contracting officer must not authorize a progress payment rate higher than the customary rate.
(d) In accordance with 10 U.S.C. 3804(b) and 41 U.S.C. 4504(b), the limit for progress payments is 80 percent on work accomplished under undefinitized contract actions. The contracting officer must not authorize a higher rate under unusual progress payments or other customary progress payments for the undefinitized actions.
Federal Register history
Sections cited
- FAR 32.501-2 Unusual progress payments
Quick answers
What is FAR 32.501-1?
FAR 32.501-1 is a subsection of the Federal Acquisition Regulation, titled "Customary progress payment rates".
When was FAR 32.501-1 last changed?
The most recent final rule on record is "Federal Acquisition Regulation: Update to Title 10 Citations" (87 FR 73894), published Dec 1, 2022 and effective Dec 30, 2022.
Are changes to FAR 32.501-1 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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