The contracting officer may use performance-based payments for individual orders and contracts provided-

1. (a) The contracting officer and offeror agree on the performance-based payment terms;

2. (b) The contract, individual order, or line item is a fixed-price type;

3. (c) For indefinite delivery contracts, the individual order does not provide for progress payments; and

4. (d) For other than indefinite delivery contracts, the contract does not provide for progress payments.