D.C. Mun. Regs. r. 27-3201
Contract financing by the District shall be used only for financing contractor working capital, and shall not be used for the expansion of contractor-owned facilities.
Except for contracts under which facilities are being procured for District ownership, contract financing by the District shall not be used for the procurement of fixed assets.
Contract financing in the form of advance payments may be used by a contracting officer to assist a contractor that is a certified minority business enterprise.
Contract financing in the form of progress payments may be used by a contracting officer to assist a contractor when private financing for a contract is either unavailable or insufficient.
The customary progress payment rate shall be ninety percent (90%) applicable to the total costs of performing the contract. The contracting officer may authorize a customary rate of ninety-five percent (95%) for a certified minority business.
Any rate higher than the rates authorized under § 3201.5 shall be considered an unusual progress payment rate. The contracting officer shall only authorize progress payments at an unusual rate if both of the following apply:
To encourage contractors to invest their own funds in performance despite the susceptibility of the contract to termination for the convenience of the District, the contract financing methods set forth in this section may be applied to the financing of terminations either in connection with, or independently of, financing for contract performance.
D.C. Mun. Regs. r. 27-3201