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I have a contractor who has met various PBP (Performance-Based Payment) milestones but cannot request payment for the full value because they have not incurred the costs. They are now attempting to submit additional PBP requests as they incur additional costs in an attempt to get the full value of the milestones. I believe they get one bite at the apple. Either request it all when all conditions have been met or request the milestone less the costs, not chew on it each time they incur additional costs. DFARs 252.232-7012, PBP - Whole Contract Basis is in the contract. On a side note, I believe the milestone values were extremely high and the contractor front loaded their costs from the beginning, but I was met with resistance by the contracting officer to address this. Am I wrong for not allowing the contractor to keep billing as they incur costs?
Our company was awarded a Task Order in response to a Request for Task Execution Plan “RTEP” under an IDIQ. This task order was only competed amongst the awardees of the IDIQ. The basic IDIQ contract allows for Performance Based Payments, but not Progress Payments. Prior to executing the contract, we notified the KO that we would require Progress Payments. The KO noted that Progress Payments were not authorized. We requested Performance Based Payments. The KO noted that Performance Based Payments would not be authorized since the 52.232-32 Performance Based Payments was not provided in the RTEP. Again, PPB is stated in the basic IDIQ Contract. The RTEP itself stated: “Specific clauses that are applicable to this RTEP are included. All clauses in the basic contract are still in full force and effect.” We are a small business, this effort exceeds the simplified acquisition threshold, it even exceeds the large business threshold of $2.5 Million, the POP is 12 Months, per the Government’s directions all the deliverable CLINs were Not Separately Priced (NSP). So, we have no way to invoice until the end of the POP. We cited Subpart 32.1 -- Non-Commercial Item Purchase Financing. In particular, 32.104 -- Providing Contract Financing and 32.107 -- Need for Contract Financing Not a Deterrent. Are these clauses applicable to our stance? Am I missing something?