May progress payments be used to acquire artwork on an FTA-funded construction project?
A. The FTA Best Practices Procurement Manual (BPPM) recommends that grantees structure their contracts for artwork on a fixed price basis with “milestone payments” at specified points of completion. These payments are not “progress payments,” which are made at regular specified intervals of time based on costs incurred by the contractor, but rather are payments based on completed work/milestones defined in the contract. We would say that your agency should use “milestone payments.” You could conceivably use “progress payments” without violating FTA rules, but you would have to comply with the requirements for “progress payments,” such as taking title to unfinished work and paying on the basis of costs incurred. These requirements are set forth in the FTA Circular 4220.1F, “Third Party Contracting Guidance,” November 1, 2008, rev. April 14, 2009, Chapter IV, subparagraph 2.b(5)(c). FTA would leave the decision to the grantee as to how best to structure payments on its contracts. The lan
A. The FTA Best Practices Procurement Manual (BPPM) recommends that grantees structure their contracts for artwork on a fixed price basis with “milestone payments” at specified points of completion. These payments are not “progress payments,” which are made at regular specified intervals of time based on costs incurred by the contractor, but rather are payments based on completed work/milestones defined in the contract. We would say that your agency should use “milestone payments.” You could conceivably use “progress payments” without violating FTA rules, but you would have to comply with the requirements for “progress payments,” such as taking title to unfinished work and paying on the basis of costs incurred. These requirements are set forth in the FTA Circular 4220.1F, “Third Party Contracting Guidance,” November 1, 2008, rev. April 14, 2009, Chapter IV, subparagraph 2.b(5)(c). FTA would leave the decision to the grantee as to how best to structure payments on its contracts. The lan
