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Progress Payments on FPIF - Liquidation Question


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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

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