WASHINGTON (Reuters) – The Pentagon is increasing the amount of interim payments it makes to defense contractors in an effort to give them a financial boost as the coronavirus pandemic weakens the broader economy, according to a memo seen by Reuters on Friday.
The move will speed the payment of millions of dollars to defense contractors while they work to complete individual projects.
The memo stated that “effective immediately” the Pentagon will increase the rate at which it pays what are known as progress payments for large contractors to 90%.
The customary progress payment rates for De