Page:United States Statutes at Large Volume 124.djvu/3817

 124 STAT. 3791 PUBLIC LAW 111–350—JAN. 4, 2011 § 4502. Payment (a) BASIS FOR PAYMENT.—When practicable, payments under sec- tion 4501 of this title 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 manage- ment plan. (3) Other quantifiable measures of results. (b) PAYMENT AMOUNT.—Payments made under section 4501 of this title may not exceed the unpaid contract price. § 4503. Security for advance payments Advance payments under section 4501 of this title may be made only on adequate security and a determination by the agency head that to do so would be in the public interest. The security may be in the form of a lien in favor of the Federal Government on the property contracted for, on the balance in an account in which the payments are deposited, and on such of the property acquired for performance of the contract as the parties may agree. This lien shall be paramount to all other liens and is effective imme- diately upon the first advancement of funds without filing, notice, or any other action by the Federal Government. § 4504. Conditions for progress payments (a) PAYMENT COMMENSURATE WITH WORK.—The executive agency shall ensure that a payment for work in progress (including mate- rials, labor, and other items) under a contract of an executive agency that provides for those payments is commensurate with the work accomplished that meets standards established under the contract. The contractor shall provide information and evidence the executive agency determines is necessary to permit the executive agency to carry out this subsection. (b) LIMITATION.—The executive agency shall ensure that progress payments referred to in subsection (a) are not made for more than 80 percent of the work accomplished under the contract as long as the executive agency has not made the contractual terms, specifications, and price definite. (c) APPLICATION.—This section applies to a contract in an amount greater than $25,000. § 4505. Payments for commercial items (a) TERMS AND CONDITIONS FOR PAYMENTS.—Payments under section 4501 of this title for commercial items may be made under terms and conditions that the head of the executive agency deter- mines are appropriate or customary in the commercial marketplace and are in the best interests of the Federal Government. (b) SECURITY FOR PAYMENTS.—The head of the executive agency shall obtain adequate security for the payments. If the security is in the form of a lien in favor of the Federal Government, the lien is paramount to all other liens and is effective immediately on the first payment, without filing, notice, or other action by the Federal Government. (c) LIMITATION ON ADVANCE PAYMENTS.—Advance payments made under section 4501 of this title for commercial items may include payments, in a total amount not more than 15 percent of the contract price, in advance of any performance of work under the contract.