The Defense Federal Acquisition Regulation Supplement was changed as of October 1 to increase to 80 percent from 75 percent the customary uniform progress payment rate for large business concerns.  The change will bring DOD in line with other executive agencies and will be applicable only to contract awards made on or after October 2001.  Though it was widely anticipated that contracts awarded earlier could be modified the new rule does not provide for this.  The rates for small businesses and small disadvantaged businesses (90 and 95 percent, respectively) remain unchanged.

A final DFARS rule, effective October 1, was also issued to reflect the increase in the cost or pricing data threshold of the FAR.  FAR 15.403-4 (Requiring Cost or Pricing Data) specifies the dollar threshold at which contracting officers must obtain cost or pricing data on negotiated acquisitions and the threshold was increased from $500,000 to $550,000 last October, 2000

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