Can CO withhold base fee payment for poor performance?
Posted 03 March 2009 - 10:53 PM
Posted 04 March 2009 - 01:23 PM
Posted 09 March 2009 - 02:35 PM
First, thank you for taking the time to respond. Yes, if the contract was active I would look for an answer there on the presumption that the status of base fee (at risk or not) would be addressed. Alas, the contract hasn't been awarded yet and so I may have posted my question to the wrong forum. I have not found any policy or other clear guidance on the issue. It has been discussed on this site previously with contrary opinions, but no supporting guidance, except for the logic of the arguments. Because logic isn't always a reliable guide for making contracting decisions and may be inconsistent with rules I was hoping to find some issued guidance with regard to that part of the larger incentive plan. In short, help!
Posted 09 March 2009 - 03:04 PM
The standard Inspection clauses give the Government the right to withhold fee under certain circumstances. For example, 52.246-5(d) states:
(1) Require the Contractor to take necessary action to ensure that future performance conforms to contract requirements; and
(2) Reduce any fee payable under the contract to reflect the reduced value of the services performed.
Does that answer your question?
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