DOD Clarifies Progress Payments Deviation
Morrison Foerster – In one of its earliest moves to shore up cash flow for contractors that may be affected by the COVID-19, the DOD issued a deviation on March 20, 2020, allowed for an increase in progress‑payment rates under DOD contracts from 80 percent to 90 percent for large business concerns and from 90% to 95% for small business concerns. In a press release from the DCMA discussing the deviation, the DCMA described the change as an “an important avenue where industry cash flow can be improved.”
