AAPD 20-05: COVID 19 Pandemic Flexibilities for Payments and Reduce Administrative Burden

AAPDs provide information of significance to all agency personnel and partners involved in the Acquisition and Assistance process. Information includes (but is not limited to): advance notification of changes in acquisition or assistance regulations; reminders; procedures; and general information. Also, AAPDs may be used to implement new requirements on short-notice, pending formal amendment of acquisition or assistance regulations.

Subject Category: Acquistion Management

Purpose: The purpose of this AAPD is to inform Acquisition and Assistance professionals of the issuance of a class deviation (Deviation #: M/OAA-DEV-FAR-20-06c) from the Federal Acquisition Regulation (FAR) aimed at maintaining the resiliency of our contractors by providing better cash flow and reducing some administrative burdens. This deviation is effective through June 18, 2022 unless rescinded earlier.
This AAPD includes the following revisions to the FAR:

1. Customary Progress Payment Rates Based on Costs
   FAR Section 32.501 and clause 52.232-16, Progress Payments are revised to allow for an increase to the progress payment rates to contractors who have cost reimbursement contracts.
2. Revisions to eliminate hard copy original documents, signatures, notarization, seals on bonds and other seals when: 

• Obtaining financial protection against losses under contracts per FAR part 28;
• Processing assignment of claims per FAR subpart 32.8:
• Executing novation agreements and change-of-name agreements per FAR part 42

Note: These revisions and flexibilities will only be available during the COVID-19 pandemic and may be rescinded prior to the time specified above. Unlike most other deviations, when this AAPD is rescinded and archived, deviated FAR clause(s) cannot remain in the awards. COs will have to modify the awards again to revert to the original FAR clause. More detailed guidance will be provided when this AAPD is archived.

AAPDs are EFFECTIVE AS OF THE ISSUED DATE unless otherwise noted in the guidance below; the directives remain in effect until this office issues a notice of cancellation.

 Date Issued: June 18, 2020