FAR 52.232-15—Progress Payments Not Included.
Plain-English Summary
FAR 52.232-15, Progress Payments Not Included, is a solicitation provision used in sealed bidding when the government will not include a progress payments clause in the resulting contract. It tells bidders up front that no progress payments will be available, that the solicitation will not be modified after award to add such a clause, and that any bid conditioned on receiving progress payments must be rejected as nonresponsive. The provision exists to preserve the integrity of sealed bidding by ensuring all bidders compete on the same payment terms and by preventing post-bid changes that would affect price, financing assumptions, or bid responsiveness. In practice, it alerts contractors that they must finance performance without progress payments and must price their bids accordingly, while giving contracting officers a clear basis to reject conditional bids that attempt to alter the government’s stated payment structure. The section is narrow but important because it directly affects bid preparation, financing risk, and responsiveness determinations in IFBs.
Key Rules
No progress payments offered
The solicitation must clearly state that a progress payments clause is not included. This means bidders cannot assume they will receive progress payments under the resulting contract.
No later addition at award
The government also states that it will not add a progress payments clause when the contract is awarded. The payment terms announced in the solicitation remain fixed for the award.
Conditional bids are nonresponsive
If a bidder conditions its bid on receiving progress payments, the bid must be rejected as nonresponsive. In sealed bidding, a bidder cannot qualify its offer on a material term that the solicitation expressly excludes.
Applies in sealed bidding
This provision is used in invitations for bids when the solicitation will not contain one of the progress payment provisions referenced in FAR 32.502-3(a) or (b). It is a solicitation-level notice tied to the IFB process.
Supports equal competition
By making the absence of progress payments explicit, the provision helps ensure all bidders compete on the same financing assumptions. This reduces the risk of unfair advantage or post-opening negotiation over payment terms.
Responsibilities
Contracting Officer
Include the provision in applicable invitations for bids when no progress payments clause will be used. Ensure the solicitation clearly states that progress payments will not be added at award and reject any bid conditioned on progress payments as nonresponsive.
Bidder/Contractor
Review the solicitation’s payment terms before bidding and price the offer without assuming progress payments. Do not attach conditions requiring progress payments, because doing so can make the bid nonresponsive and ineligible for award.
Agency
Use consistent solicitation terms so all bidders understand the financing structure and competition is conducted fairly. Support the contracting officer in maintaining the stated payment approach and avoiding unauthorized changes after bid opening.
Practical Implications
Bidders must plan to finance performance without government progress payments, which can affect pricing, cash flow, and bonding or lending arrangements.
A conditional statement in a bid about needing progress payments is a serious responsiveness problem in sealed bidding and can lead to rejection even if the price is otherwise favorable.
Contracting officers should check bids carefully for any language that makes award contingent on progress payments or other payment-term changes.
Because the clause says the government will not add progress payments at award, bidders should not expect post-opening negotiation to fix a financing assumption.
This provision is especially important for firms with limited working capital, since the absence of progress payments may materially affect their ability to perform and their bid strategy.
Official Regulatory Text
As prescribed in 32.502-3 (c) , insert the following provision in invitations for bids if the solicitation will not contain one of the provisions prescribed in 32.502-3 (a) and (b): Progress Payments Not Included (Apr 1984) A progress payments clause is not included in this solicitation, and will not be added to the resulting contract at the time of award. Bids conditioned upon inclusion of a progress payment clause in the resulting contract will be rejected as nonresponsive. (End of clause)