On December 30, 2024, DoD issued a notice seeking public input for the purpose of implementing Section 874 of the NDAA for FY 2024. Section 874 authorizes DoD to establish a pilot program to increase the customary progress payment rate to incentivize contractors to meet or exceed certain criteria. According to Section 874, the pilot program would be voluntary, and “the incentive criteria must be clear and measurable.” Section 874 authorizes an increase of up to 10 percentage points and would only be available to other than small entities given that the current progress payment rate for small entities is higher than the rate authorized in Section 874.

The December 30 notice can be found here.