{"data":{"id":"us/48-cfr-32.1001","jurisdiction":"us","citation":"48 CFR 32.1001","heading":"32.1001 Policy.","body":"(a) Performance-based payments are the preferred Government financing method when the contracting officer finds them practical, and the contractor agrees to their use.\n(b) Performance-based payments are contract financing payments that are not payment for accepted items.\n(c) Performance-based payments are fully recoverable, in the same manner as progress payments, in the event of default.\n(d) Performance-based payments are contract financing payments and, therefore, are not subject to the interest-penalty provisions of prompt payment (see Subpart 32.9). These payments shall be made in accordance with agency policy.\n(e) Performance-based payments shall not be used for—\n(1) Payments under cost-reimbursement line items;\n(2) Contracts for architect-engineer services or construction, or for shipbuilding or ship conversion, alteration, or repair, when the contracts provide for progress payments based upon a percentage or stage of completion; or\n(3) Contracts awarded through sealed bid procedures.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 1—FEDERAL ACQUISITION REGULATION","SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS","PART 32—CONTRACT FINANCING","Subpart 32.10—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":"5abd21a5f65aecf7792a2db1ee6327f384dfc9443baad914f402fd824cb88b13","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-32.1000","next":"us/48-cfr-32.1002"},"notice":"GroundRules: Original legal text. Not legal advice."}