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![handle is hein.gao/gaobacuwb0001 and id is 1 raw text is:
UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON, D.C. 20548
OMCE OF GENERAL COUNSEL
B-189402 August 3, 1981
Gambal & Associates, Inc.
22 Shenandoah Drive
North Caldwell, New Jersey 07006
Attn: John F. Gambal
Gentlemen:
We refer to your inquiry of December 29, 1980,
concerning the meaning of the following statement from
our decision, 57 Comp. Gen. 25 (1977), 77-2 CPD 319:
We note in this regard that the applicable
statutes place no limitations on how the
progress payments are to be computed, other
than that they cannot exceed the unpaid
portion of the contract.
Progress payments are authorized by 41 U.S.C. S 255
(1976) for civilian agencies and by 10 U.S.C. 5 2307
(1976) for military agencies. Both statutes provide
that such payments may not exceed the unpaid contract
price. The legislative history of these statutes, as
amended, contains the following statement:
[The statutes] would restrict payments
under a contract to the unpaid contract
price. A first payment may be in any sum
not exceeding the maximum amount of the
contract price. Each following payment
may not exceed the then unpaid balance
of the contract price.
S. Rep. No. 2201, 85th Cong., 2d Sess. 8 reprinted in
1958 U.S. Code Cong. & Ad. News 4021, 4027. Of course,
the cost to the contractor to complete a contract
may be more or less than the contract price, but
payments made may not exceed the amount obligated in
the contract for complete performance. See Federal
Procurement Regulations (FPR) S 1-30.502 (Amendment 152,
September 1975); Defense Acquisition Regulation (DAR)](ViewImageLocal?handle=hein.gao/gaobacuwb0001&div=1&collection=&method=preview&ext=.png&size=3)