DoD withdraws proposed rule change to contractor payments

Deputy Defense Secretary Patrick Shanahan said the rule on performance-based payments and progress payments wasn’t adequately coordinated within the Pentagon ...

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Last week, the Defense Department took the highly-unusual step of withdrawing a proposed rule that would have made major changes to the way it pays its contractors. Deputy Defense Secretary Patrick Shanahan said the rule on performance-based payments and progress payments wasn’t adequately coordinated within the Pentagon before the public comments process began. In effect, he told officials to start the regulatory process over again. David Berteau, president of the Professional Services Council, one of the industry groups that expressed serious concerns about the rule, joined Federal Drive with Tom Temin for more.

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