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Pentagon

Contractor Progress Payments Increased to 90 Percent, As RFO Moves Into Formal Rulemaking

Frank Wolfe

Tuesday, June 23rd, 2026

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Contractor Progress Payments Increased to 90 Percent, As RFO Moves Into Formal Rulemaking

Aerial of the Pentagon, the Department of Defense headquarters in Arlington, Virginia, near Washington DC, with I-395 freeway on the left, and the Air Force Memorial up middle.

Monthly progress payments for defense contractors increase to 90 percent under the Revolutionary FAR Overhaul (RFO), as the latter's first four proposals moved into formal rule making on Tuesday. RFO stemmed from Executive Order 14275 on April 15 last year and aims to make federal agency acquisition more flexible and increase full and open competition, as 48 percent of DoD contracts in fiscal 2025 came without such competitive bidding. Under the RFO's FAR Section 52.237-4, "in making progress payments the contracting…

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