In a memo signed today, the Defense Department says it is immediately increasing progress payment rates to respond to the coronavirus outbreak.
The memo, signed by Kim Herrington, the acting principal director of defense pricing and contracting, was sent to the heads of U.S. Cyber Command, U.S. Special Operations Command and U.S. Transportation Command as well as top procurement officials at the services and the directors of defense agencies and defense field activities.
"Effective immediately, in response to the Coronavirus Disease 2019 (COVID-19) national emergency, the progress payment rates at Defense Federal Acquisition Regulation Supplement (DFARS) 232.501-1 are increased to 90 percent for large business concerns and 95 percent for small business concerns," the memo reads.
The document says the policy remains in effect until rescinded.
In a tweet Friday, Lockheed Martin said it applauds DOD's enhanced progress payments for small businesses. "Lockheed Martin will do the same by flowing these funds to our supply chain partners vital in supporting U.S. men & women in uniform," the company added.