Pentagon to host January meetings on contract financing and performance incentives

The Defense Department said yesterday it will host three public meetings early next year "to obtain views of experts and interested parties in Government and the private sector regarding revising policies and procedures for contract financing, performance incentives, and associated regulations for DOD contracts."

The slate of meetings follows the Pentagon's withdrawal of a controversial rule that would have reduced contractor progress payments. The Defense Department was implementing legislation meant to encourage performance-based payments.

In its October withdrawal, the Pentagon said regulation related to implementing the legislation that prompted the original rule would be known as Defense Federal Acquisition Regulation Supplement Case 2019-002. "Any other changes to contract financing policy will be addressed under DFARS Case 2019-D001," the notice added.

The new slate of meetings is associated with case 2019-D001.

DOD is set to hold public meetings Jan. 10, Jan. 22 and Feb. 19. All will be held at the Mark Center in Alexandria, VA.