3224. PROGRESS PAYMENTS TO SUBCONTRACTORS

3224 PROGRESS PAYMENTS TO SUBCONTRACTORS 3224.1 The contracting officer shall encourage each contractor to provide progress payments to subcontractors on terms that meet the standards in §3215 for customary progress payments. 3224.2 In each contract providing for progress payments, the contracting officer shall include a provision, approved by the Director, which requires the contractor to include in the terms of each subcontract the substance of the progress payment provisions in the prime contract, modified to indicate that the contractor (not the District) awards the subcontract and administers the progress payments. 3224.3 If the contractor makes progress payments to a subcontractor under a cost-reimbursement prime contract, the contracting officer shall accept the progress payments as reimbursable costs of the prime contract only under the following conditions: (a) When the payments are made under the standards in §3215 for customary progress payments; (b) When the payments do not exceed the progress payment rate set forth in §3215; (c) When the subcontractor complies with the liquidation principles set forth in §3220; and (d) When the subcontract contains progress payments terms as required under §3224.2. SOURCE: Final Rulemaking published at 35 DCR 1637 (February 26, 1988).