Andy, a contracting officer, is reviewing a Performance Based Payment (PBP) request from his contractor. The PBP event listed in the contract requires the contractor to complete the mock-up of a prototype unit for Government technical team review. The contractor has completed 99% of the mock-up, but ran into a delay with a 3rd tier subcontractor. The contractor informs Andy that the mock-up will be 99% complete at the time of the Government review. Based only on these facts, may Andy approve the PBP request at this time?

No. Andy must not approve the PBP request at this time because it is not 100% complete.

Explanation:

Performance-based payment is the transfer of money after a measurable action has been taken or a performance target that has been predetermined has been met.

In this scenario, we are told that the contractor has completed 99% of the mock-up, but ran into a delay with a 3rd tier subcontractor and that the contractor then inform Andy that the mock-up will be 99% complete at the time of the Government review. Dur to this, Andy should not approve this because the PBP event is not yet 100%. For payment to be approved, it must be 100%.

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