Pentagon Floats Rule To Use Payment Analysis Tool

Law360, New York (January 30, 2012, 9:10 PM EST) -- The U.S. Department of Defense unveiled a proposed rule on Monday that would require contracting officers to use an analytics tool when contemplating the use of performance-based payments on new fixed-price type contract awards.

The agency's proposal would amend the Defense Federal Acquisition Regulation Supplement to provide detailed guidance and instructions on how to use an analytics tool to evaluate the proposed use of performance-based payments, which are “the preferred government financing method,” according to a Federal Register notice.

This performance-based analysis tool is a cash-flow...
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