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Contract Payments after Period of Performance


Valburns

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Can a payment be made after the delivery date (performance date) ends?

Yes, lot of supplies are shipped on the final delivery date and the government then gets billed after that date. Cost type contracts may be billed years after the final delivery date.

Does the FAR require the contracting officer to modify the contract to extend the delivery dates? if so what part?

43.103 -- Types of Contract Modifications.

Contract modifications are of the following types:

(a) Bilateral. A bilateral modification (supplemental agreement) is a contract modification that is signed by the contractor and the contracting officer. Bilateral modifications are used to --

(1) Make negotiated equitable adjustments resulting from the issuance of a change order;

(2) Definitize letter contracts; and

(3) Reflect other agreements of the parties modifying the terms of contracts.

Changing the delivery dates would be change in the terms of the agreement, if past the orginal date and no provision for early delivery. There should also be consideration given.

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Can a payment be made after the delivery date (performance date) ends?

Does the FAR require the contracting officer to modify the contract to extend the delivery dates? if so what part?

1. In my experience, payment is always made after the delivery date. If the contractor doesn't deliver, then he doesn't get paid. Why would you make payment before the contractor delivers?

2. Nothing in the FAR requires the contracting officer to modify the contract to extend the delivery dates, although the "Changes" clause does require the contracting officer to make an equitable adjustment in the delivery schedule if he/she makes a change that causes an increase or decrease in the time required for performance.

Perhaps there are details you can share about your specific situation that will provide a clearer understanding of your dilemma.

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Can a payment be made after the delivery date (performance date) ends?

Does the FAR require the contracting officer to modify the contract to extend the delivery dates? if so what part?

Not enuff info 2 answer intelligently. Try adding mor...

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Often, DCAA will tell contractors that costs incurred after the contract's period of performance ends are not allowable. Auditors will require a contract mod that officially extends the PoP in order to make such costs allowable.

Which is nonsense, of course. Costs lag performance in the normal course of events. By the time a lower-tier subcontractor's costs get up to the prime for billing, several months may have passed.

But that doesn't keep DCAA from trying to "save" taxpayers some money by disallowing costs based on whether or not they were incurred during the contract's PoP.

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