Federal Acquisition Regulation
Criteria for use
FAR 32.1003
The contracting officer may use performance-based payments for individual orders and contracts provided- (a) The contracting officer and offeror agree on the performance-based payment terms; (b) The contract, individual order, or line item is a fixed-price type; (c) For indefinite delivery contracts, the individual order does not provide for progress payments; and (d) For other than indefinite delivery contracts, the contract does not provide for progress payments.
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