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   <concept id="DFARS_232.1001"
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         <ph props="autonumber" class="- topic/ph ">232.1001</ph> Policy.</title>
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         <p outputclass="List1" class="- topic/p ">(a) As with all contract financing, the purpose of performance-based payments is to assist the contractor in the payment of costs incurred during the performance of the contract. See PGI <xref outputclass="fm:ParaNumOnly"
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                  xtrc="232.1001">232.1001</xref> (a) for additional information on use of performance-based payments. However, in accordance with 10 U.S.C. 3802(a)(2), performance-based payments shall not be conditioned upon costs incurred in contract performance, but on the achievement of performance outcomes. Subject to the criteria in <xref outputclass="fm:ParaNumOnly"
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                  xtrc="232.1003-70">232.1003-70</xref> , all companies, including nontraditional defense contractors, are eligible for performance-based payments, consistent with best commercial practices.</p>
         <p outputclass="List1" class="- topic/p ">(d)  The contracting officer shall use the following standard payment terms for performance-based payments:  The contractor entitlement date, if any, specified in the contract, or 14 days after receipt by the designated billing office of a proper request for payment, whichever is later.</p>
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