Page:United States Statutes at Large Volume 108 Part 4.djvu/670

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108 STAT. 3304 PUBLIC LAW 103-355—OCT. 13, 1994 " SEC. 305. CONTRACT FINANdNG. "; (2) by inserting "PAYMENT AUTHORITY.—" after "(a)" in subsection (a); (3) by inserting "PAYMENT AMOUNT.—" after "(b)" in subsection (b); (4) by inserting "SECURITY FOR ADVANCE PAYMENTS. —" afl«r "(c)" in subsection (c); and (5) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively. (b) PERFORMANCE-BASED PAYMENTS.— Such section, as amended by subsection (a), is further amended by inserting after subsection (a) the following new subsection (b): " (b) PERFORMANCE-BASED PAYMENTS.—Whenever practicable, payments under subsection (a) shall be made on any of the following bases: "(1) Performance measured by objective, quantifiable methods such as delivery of acceptable items, work measurement, or statistical process controls. "(2) Accomplishment of events defined in the program management plan. "(3) Other quantifiable measures of results.". (c) TERMINOLOGY CORRECTION.— Subsection (a)(2) of such section is amended by striking out "bid". (d) EFFECTIVE DATE OF LIEN RELATED TO ADVANCE PAY- MENTS.—Such section, as amended by subsection (a)(5), is further amended in subsection (d) by inserting before the period at the end of the third sentence the following: "and is effective immediately upon the first advancement of funds without filing, notice, or any other action by the United States". (e) REVISION OF CIVILIAN AGENCY PROVISION To ENSURE UNI- FORM REQUIREMENTS FOR PROGRESS PAYMENTS.— Such section is further amended by adding at the end the following new subsections: "(e) CONDITIONS FOR PROGRESS PAYMENTS. — (1) The executive agency shall ensure that any payment for work in progress (including materials, labor, and other items) under a contract of an executive agency that provides for such payments is commensurate with the work accomplished that meets standards established under the contract. The contractor shall provide such information and evidence as the executive agency determines necessary to permit the executive agency to carry out the preceding sentence. "(2) The executive agency shall ensure that progress payments referred to in paragraph (1) are not made for more than 80 percent of the work accomplished under the contract so long as the executive agency has not made the contractual terms, specifications, and price definite. "(3) This subsection applies to any contract in an amount greater than $25,000. " (f) CONDITIONS FOR PAYMENTS FOR COMMERCIAL ITEMS.— (1) Payments under subsection (a) for commercial items may be made under such terms and conditions as the head of the executive agency determines are appropriate or customary in the commercial marketplace and are in the best interests of the United States. The head of the executive agency shall obtain adequate security for such payments. If the security is in the form of a lien in favor of the United States, such lien is paramount to all other