DoD Boosts Progress Payment Rates To Industry; Boeing To Pause Puget Sound Operations

摘要

The Defense Department on Sunday said that senior procurement officials are taking steps to maintain the health of the defense industrial base (DIB) amid the coronavirus pandemic, including increasing the rate of progress payments to large and small businesses and ensuring that invoices are paid quickly. The steps DoD is taking in support of the DIB were put forth in a memo last Friday from Kim Herrington, director of Defense Pricing and Contracting, who said due to the COVID-19 outbreak, “effective immediately” progress payment rates for large businesses will be increased from 80 percent of cost to 90 percent and for small businesses from 90 percent to 95 percent. Lockheed Martin [LMT] last Friday night tweeted its support for the change. “We applaud @DeptofDefense for leading by example during COVID-19 crisis with enhanced progress payments targeted for small businesses. Lockheed Martin will do the same by flowing these funds to our supply chain partners in supporting U.S. men & women in uniform.” The government makes progress payments to its contractors as work progresses, with the compensation rates a percentage of total costs incurred under a contract. The DoD on Sunday also said that it is using other means to also accelerate payments to prime contractors and is asking to those contractors in turn to quickly pay their subcontractors. It also said that the Defense Contract Management Agency, which provides contract administration services for the department, is working to make sure contractor invoices “be paid in a timely manner.”