Government Contract Progress Payments

The government can issue progress payments to the contractor prior to contract completion. The payments are based on an approved progress payment rate that can be included as terms in a government contract. The contractor issues progress payment requests to the government as costs are incurred. The requests can be issued based on a regular schedule or work progress.

Progress payments are applied to a specific contract, project, or set of project transactions. Use the Projects and Activities page in PeopleSoft Contracts to associate a project and activity to progress payment terms on a contract. The system uses the specified projects and activities to calculate inception to date and estimated costs. Transaction rows that are eligible for progress payments are stored in the Project Transaction table (PROJ_RESOURCE) with analysis types that are associated with the PeopleSoft Inception to Date (PSITD) or PeopleSoft Estimated Costs to Completion (PSECC) analysis groups. The Accumulate Progress Payment Costs Application Engine process (CA_PGP_CALC) in PeopleSoft Contracts retrieves the eligible costs from the Project Transaction table.

Projects and activities that are associated with contract lines are not included in progress payment cost calculations.

Progress payments are applicable only to amount-based contract lines for government contracts.