FAR 42.1107—Contract clause.
Plain-English Summary
FAR 42.1107 tells contracting officers when to include the Production Progress Reports clause at 52.242-2 in solicitations and contracts, and what additional instructions must accompany that clause. It covers three main topics: the trigger for using production progress reporting, the exceptions for construction contracts and Federal Supply Schedule contracts, and the requirement to put specific reporting instructions in the Schedule when the clause is used. In practice, this section is about making sure the Government gets timely, usable visibility into contractor production status when that visibility is needed to manage performance, schedule risk, and delivery expectations. It also prevents unnecessary or inappropriate use of the clause where production reporting does not fit the contract type. For contractors, this section matters because it can create recurring reporting obligations that must be planned for, staffed, and integrated into production management processes. For contracting officers, it is a drafting and administration requirement: if reporting is needed, the clause must be included and the instructions must be clear enough to tell the contractor exactly what to report, when, and in what format.
Key Rules
Use clause when reporting is needed
If production progress reporting is required, the contracting officer must insert the clause at 52.242-2, Production Progress Reports, in the solicitation and contract. This makes the reporting obligation an express contract requirement rather than an informal expectation.
Do not use for construction
The clause is not to be used when a construction contract is contemplated. Construction contracts are excluded from this reporting requirement, so the contracting officer should not add 52.242-2 in that context.
Do not use for FSS contracts
The clause is also not to be used when a Federal Supply Schedule contract is contemplated. The rule recognizes that FSS contracting is handled differently and does not call for this production reporting clause.
Specify reporting instructions
When the clause is used, the contracting officer must provide appropriate reporting instructions in the Schedule. Those instructions should tell the contractor what information to report and how the reporting is to be carried out.
Tie instructions to 42.1106(a)
The Schedule instructions must be developed in accordance with 42.1106(a). In practice, this means the reporting direction should be tailored to the contract’s needs and placed where the contractor will clearly see it.
Responsibilities
Contracting Officer
Determine whether production progress reporting is required; insert clause 52.242-2 when appropriate; exclude the clause for contemplated construction contracts and Federal Supply Schedule contracts; and write clear, appropriate reporting instructions in the Schedule when the clause is used.
Contractor
If the clause is included, comply with the reporting requirements and follow the Schedule instructions for timing, content, and format of production progress reports.
Agency/Program Office
Identify whether production visibility is needed to support contract administration and delivery oversight, and provide the contracting officer with the reporting needs that should be reflected in the Schedule.
Practical Implications
This section is mainly a contract drafting control: if reporting is needed, it must be expressly included, and the instructions must be specific enough to be enforceable.
A common pitfall is adding the clause without clear Schedule instructions, which can lead to inconsistent reports, disputes over what is required, or reports that are not useful to the Government.
Another pitfall is using the clause in the wrong contract type, especially construction or Federal Supply Schedule acquisitions, where the rule says not to use it.
Contractors should treat the clause as a real administrative burden and make sure production systems can generate the required data on time and in the required format.
Contracting officers should coordinate early with the requiring activity so the reporting requirement matches actual oversight needs and does not create unnecessary paperwork.
Official Regulatory Text
(a) The contracting officer shall insert the clause at 52.242-2 , Production Progress Reports, in solicitations and contracts when production progress reporting is required; unless a construction contract, or a Federal Supply Schedule contract is contemplated. (b) When the clause at 52.242-2 is used, the contracting officer shall specify appropriate reporting instructions in the Schedule (see 42.1106 (a)).