The Defense Department on Monday said it will decrease its progress payment rate for large businesses to 80 percent on new contracts, the rate it paid big contractors before the COVID-19 pandemic hit in March 2020.

In March 2020, to help large contractors keep their smaller suppliers healthy amid challenges related to the onset of the pandemic, DoD increased the progress payment rate to 90 percent. The change back to 80 percent goes into effect for solicitations for contracts issued on or after July 7.

The 90 percent rate on existing contracts and task orders will remain through the life of the contract.

DoD said that making the rate change on new contracts will “minimize disruption to the defense industrial base.”

The department also increased its payment rate for small businesses to 95 percent from 90 percent in March 2020. DoD said it the temporary higher rate for small businesses will hold for now.