1. Definitions. As used in this clause—

   “Lot” means one or more fixed-price deliverable line items or deliverable subline items representing a single, severable group where the sum of the costs for each group is segregated and a single progress payment rate is used.

   “Multiple lots” means more than one lot on a single contract where progress payment proration is performed on a lot-wide, versus contract-wide, basis.

2. When submitting progress payment requests under the billing instructions in Federal Acquisition Regulation (FAR) clause 52.232-16, Progress Payments, or Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.232-7002, Progress Payments for Foreign Military Sales Acquisitions, of this contract, the Contractor shall—

   1. Submit separate progress payment requests for each lot identified in the contract;

   2. Identify the contract price for the lot as the sum of all fixed-priced line items identified to the lot, in accordance with FAR 32.501-3;

   3. Identify the lot on each progress payment request to which the request applies;

   4. Calculate each request on the basis of the price, costs (including the cost to complete), subcontractor financing, and progress payment liquidations of the lot to which it applies; and

   5. Distribute costs among lots in a manner acceptable to the Administrative Contracting Officer.

3. Submit a separate progress payment request for U.S. and FMS requirements in accordance with the DFARS clause 252.232-7002, Progress Payments for Foreign Military Sales Acquisitions, of this contract.

(End of clause)