Section 32.1005 - Solicitation provision and contract clause(a) Insert the clause at 52.232-32, Performance-Based Payments, in- (1) Solicitations that may result in contracts providing for performance-based payments; and(2) Fixed-price contracts under which the Government will provide performance-based payments.(b)(1) Insert the solicitation provision at 52.232-28, Invitation to Propose Performance-Based Payments, in negotiated solicitations that invite offerors to propose performance-based payments.(2) Use the provision with its Alternate I in competitive negotiated solicitations if the Government intends to adjust proposed prices for proposal evaluation purposes (see 32.1004(e)). 72 FR 73222 , Dec. 26, 2007