Progress Payments on FPIF - Liquidation Question
Started by Patrick Mathern · May 22, 2015 · 2 replies
- POriginal post
Patrick Mathern
May 22, 2015 · 11y ago
I'm working through a Prime proposal >TINA in response to a non-competitive FPIF RFP with progress payments. I have limited experience with FPIF, so I need some education.
My question is regarding liquidation and profit:
Assuming a 20% liquidation rate (80% progress payment) how and when does the contractor invoice profit/fee? Is it invoiced with customary progress payments and if so, what % is applied? The target fee % agreed to in negotiations? How/when is that then adjusted to reflect the outcome of the agreed to share ratios related to the FPIF?
Thank you,
Patrick
- D
Don Mansfield
May 22, 2015 · 11y ago
It depends on the payment clause of the contract. Under FAR 52.232-16 Progress Payments, the contractor gets paid a percentage of total costs--it does not provide for the payment of profit.
- R
Retreadfed
May 23, 2015 · 11y ago
Patrick, have you looked at FAR 52.216-16 and 17? You should find your answer on profit there.