252.232-7004 — DoD Progress Payment Rates.
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.232-7004 — DoD Progress Payment Rates.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.232-7004 DoD Progress Payment Rates. As prescribed in 232.502-4-70(b), use the following clause: DoD Progress Payment Rates (OCT 2014) If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and liquidations rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 90 percent. (End of clause) [79 FR 61582, Oct. 14, 2014]
Compliance Checklist
Flow-Down to Subcontractors
No flow-down required
This clause applies only to the prime contract and does not need to be flowed down to subcontractors.
Frequently Asked Questions
DFARS 252.232-7004 (DoD Progress Payment Rates.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.232-7004 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.