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Highlights

GAO commented on proposed changes to the Federal Acquisition Regulation that would: (1) reduce the progress payment rate for small business concerns and all other contractors; (2) limit progress payments for all contractors to 80 percent of the work accomplished when the specific terms and price of a contract have not been made definite; and (3) require a special contract provision to describe how the separate rates would be applied when separate progress payment rates are necessary. GAO supported the concept of government-wide uniformity regarding progress payment rates.