{"data":{"id":"us/48-cfr-232.1001","jurisdiction":"us","citation":"48 CFR 232.1001","heading":"232.1001 Policy.","body":"(a) As with all contract financing, the purpose of performance-based payments is to assist the contractor in the payment of costs incurred during the performance of the contract. See PGI 232.1001(a) for additional information on use of performance-based payments. However, in accordance with 10 U.S.C. 3802(a)(2), performance-based payments shall not be conditioned upon costs incurred in contract performance, but on the achievement of performance outcomes. Subject to the criteria in 232.1003-70, all companies, including nontraditional defense contractors, are eligible for performance-based payments, consistent with best commercial practices.\n(d) The contracting officer shall use the following standard payment terms for performance-based payments: The contractor entitlement date, if any, specified in the contract, or 14 days after receipt by the designated billing office of a proper request for payment, whichever is later.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 2—DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE","SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS","PART 232—CONTRACT FINANCING","Subpart 232.10—Performance-Based Payments"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-48.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:29Z","sha256":"b51a6fe30ce302ce8573403bbe2373c4aee3cc7c12f541f1a62235041acb8116","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-232.908","next":"us/48-cfr-232.1003-70"},"notice":"GroundRules: Original legal text. Not legal advice."}