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DOD/DARC RIN: 0750-AH54 Publication ID: Fall 2014 
Title: Performance-Based Payments (DFARS Case 2011-D045) 
Abstract: DoD amended the Defense Federal Acquisition Regulation Supplement (DFARS) to provide detailed guidance and instructions on the use of the performance-based payments (PBP) analysis tool. The PBP analysis tool is a cash-flow model for evaluating alternative financing arrangements, and is required to be used by all contracting officers contemplating the use of PBPs on new fixed-price type contract awards resulting from solicitations issued on or after July 1, 2011. This rule will help ensure that performance-based payments never exceed total cost incurred at any point during the contract. The PBP analysis tool calculates improved financing opportunities that will provide benefit to both industry (prime and subcontractor level) and the taxpayer. No significant impact on small entities is anticipated because requiring use of the PBP tool does not require contractors to expend significant effort or cost. 
Agency: Department of Defense(DOD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Completed Actions 
Major: No  Unfunded Mandates: No 
CFR Citation: 48 CFR 232    48 CFR 252   
Legal Authority: 41 USC 1303   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  01/30/2012  77 FR 4638   
NPRM Comment Period End  03/30/2012    
Final Action  03/31/2014  79 FR 17931   
Final Action Effective  03/31/2014 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Manuel Quinones
Department of Defense
Defense Acquisition Regulations Council
4800 Mark Center Drive, Suite 15D07-2,
Alexandria, VA 22350
Phone:571 372-6088
Email: manuel.quinones.civ@mail.mil