PGI 232.1001 Policy.
(a) Contracting officer action. Performance-based payments are not practical for use on all fixed price contracts and require considerable effort between the contractor and Government to identify the appropriate performance-based payment events and establish the proper completion criteria for those events. Additionally, FAR 32.1003 prohibits contracts from having both progress payments and performance-based payment financing on a contract at the same time. Additional information and instruction on performance-based payments are provided in the DoD Performance-based Payments Guide on the DPC website in the Price, Cost and Finance section under the Performance Based Payments – Guidebook and Analysis Tool tab at https://www.acq.osd.mil/asda/dpc/pcf/pricing-topics.html#pdp .