52.232-28 — Invitation To Propose Performance-Based Payments.

FAR 52.232-28 — Invitation To Propose Performance-Based Payments.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

52.232-28 Invitation To Propose Performance-Based Payments. As prescribed in 32.1005(b)(1), insert the following provision: Invitation To Propose Performance-Based Payments (MAR 2000) (a) The Government invites the offeror to propose terms under which the Government will make performance-based contract financing payments during contract performance. The Government will consider performance-based payment financing terms proposed by the offeror in the evaluation of the offeror's proposal. The Contracting Officer will incorporate the financing terms of the successful offeror and the FAR clause, Performance-Based Payments, at FAR 52.232-32, in any resulting contract. (b) In the event of any conflict between the terms proposed by the offeror and the terms in the clause at FAR 52.232-32, Performance-Based Payments, the terms of the clause at FAR 52.232-32 shall govern. (c) The Contracting Officer will not accept the offeror's proposed performance-based payment financing if the financing does not conform to the following limitations: (1) The Government will make delivery payments only for supplies delivered and accepted, or services rendered and accepted in accordance with the payment terms of this contract. (2) The terms and conditions of the performance-based payments must— (i) Comply with FAR 32.1004; (ii) Be reasonable and consistent with all other technical and cost information included in the offeror's proposal; and (iii) Their total shall not exceed 90 percent of the contract price if on a whole contract basis, or 90 percent of the delivery item price if on a delivery item basis. (3) The terms and conditions of the performance-based financing must be in the best interests of the Government. (d) The offeror's proposal of performance-based payment financing shall include the following: (1) The proposed contractual language describing the performance-based payments (see FAR 32.1004 for appropriate criteria for establishing performance bases and performance-based financ

• (b) In the event of any conflict between the terms proposed by the offeror and the terms in the clause at FAR 52.232-32, Performance-Based Payments, the terms of the clause at FAR 52.232-32 shall govern.
• (2) The terms and conditions of the performance-based payments must— (i) Comply with FAR 32.1004; (ii) Be reasonable and consistent with all other technical and cost information included in the offeror's proposal; and (iii) Their total shall not exceed 90 percent of the contract price if on a whole contract basis, or 90 percent of the delivery item price if on a delivery item basis.
• (3) The terms and conditions of the performance-based financing must be in the best interests of the Government.
• (d) The offeror's proposal of performance-based payment financing shall include the following: (1) The proposed contractual language describing the performance-based payments (see FAR 32.1004 for appropriate criteria for establishing performance bases and performance-based finance payment amounts).