UK Ministry of Defence and DE&SThe UK's defence buyer, contracting mainly through Defence Equipment & Support, on DEFCON terms under the Procurement Act 2023.US Department of Defense: the services and DIUThe Army, Navy, Air Force, Space Force and defence agencies, buying under the FAR and DFARS, with the Defense Innovation Unit awarding prototype Other Transactions.NATO Support and Procurement Agency (NSPA)NATO's procurement agency in Luxembourg, buying for NATO bodies and member nations under its own procurement rules.OCCAR (Organisation for Joint Armament Cooperation)The intergovernmental agency in Bonn that runs collaborative European armament programmes such as A400M, Boxer and Eurodrone.European Commission: EDF and SAFEThe Commission funds defence research and development through the European Defence Fund and lends to member states for procurement through SAFE.
How they pay, break and allow assignment
| Buyer | How it pays | When it can walk away | Assignment and transfer |
|---|---|---|---|
| UK Ministry of Defence and DE&S | The Procurement Act implies a 30-day payment term for valid invoices into every public contract. Milestone plans are set contract by contract. | Break on notice (20 business days in the Innovation Standard Contract), with an indemnity for unavoidable loss capped at the contract price, plus implied termination rights under the Act. | No assignment without the MOD's prior written consent. Lenders usually rely on security over the proceeds or ask for consent on larger contracts. |
| US Department of Defense: the services and DIU | Progress payments on costs incurred (customarily 80%, 85% for small businesses) or performance-based payments; Prompt Payment Act interest on late payment. Invoices go through the Wide Area Workflow system. | Termination for convenience at any time, with costs and a reasonable profit on work done, capped at the contract price. OT agreements set their own termination terms. | Payments can be assigned once, to a financing institution or an agent for a syndicate, under the Assignment of Claims Act and FAR 52.232-23, on notice to the contracting officer. |
| NATO Support and Procurement Agency (NSPA) | Set by each contract. NSPA is funded by the nations and bodies it buys for, so payment follows their funding of the programme. | Set by the general provisions in the contract, not by national law. Read them in the solicitation pack. | Set by the contract's general provisions; expect NSPA's consent to be needed. |
| OCCAR (Organisation for Joint Armament Cooperation) | Funded from each programme's operational budget, contributed by the participating states; payment terms are set in the programme contract. | Set by the programme contract. Changes in a participating state's commitment flow through to the contract scope. | Set by the programme contract; consent of OCCAR is the norm. |
| European Commission: EDF and SAFE | EDF: pre-financing, interim and final payments under the grant agreement, at up to 100% of eligible costs for research, 20% for prototypes and 80% for testing and certification. SAFE: 15% pre-financing to the member state, then tranches. | EDF grants can be suspended, reduced or terminated under the grant agreement. SAFE contracts follow the member state's own terms. | EDF: results cannot pass to a non-associated third country without prior notice to the Commission, and funding must be repaid if the transfer harms EU security interests. |
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General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.