Which contract type or items can progress payments be authorized?

Progress payments can be authorized for various contract types, including fixed-price contracts, cost-reimbursement contracts, and certain time-and-materials contracts. Typically, they are applicable to construction contracts and large procurement projects where costs are incurred over time. These payments are based on the completion of specific milestones, deliverables, or percentages of work completed, ensuring that contractors receive funding as they progress through the project.