GAO working on progress payments report  

As industry criticizes a proposed Pentagon rule on progress payments, the Government Accountability Office is working on a congressionally mandated review of these payments.

A report attached to the Fiscal Year 2019 National Defense Authorization Act directs "the Comptroller General of the United States to submit to the congressional defense committees, no later than 180 days after the date of enactment of this Act, a report on the results of an analysis of the effects of current financing levels of Department of Defense contracts on contractors of the Department and the budgets of the Department to include an analysis and assessment of the impact to government and business on the relationship between financing amounts and contractor profit and the willingness of contractors to pursue contracts with the Department."

"The assessment should take into consideration past changes to progress payment rates and conditions as well as progress payment rates and limitations on progressing for undefinitized contract actions," the document adds.

Tim DiNapoli of GAO told Inside Defense GAO has kicked off the study, which will be complete in the February-March time frame.