say you have an FFP contract and are purchasing a manufactured item. The milestones include the manufacturing plan, delivery and acceptance. What is your take when a contractor is expected to miss the delivery date due to their subcontractor delaying shipment of parts? The contractor is asking for an extension so it doesn’t reflect poorly on them. Do you grant the extension given it’s a reasonable timeframe and the contractor explained they ordered parts on time etc? Or just document the file of all of this and let them lapse? They will lapse whether an official extension is granted or not. I have gone back and forth about this and am now over thinking it

And what if it’s our fault and say they were going to deliver on time and we wanted to reschedule for two weeks out because the people who need to be present are on travel or the room isn’t ready for them? I would think we would officially extend, right?

Looking forward to reading your thoughts

Well, which is it? Is it the contractor's fault or a Government change?

If the contractor is at fault for its late ordering of parts, why would the Government modify the due date? Instead, the Government can simply and informally forbear termination for cause/default and accept the late delivery. Or, if the contractor really wants a contract modification, the contractor can approach the Government and try to negotiate for such. An exchange of consideration (a reduction in the contract price or some other consideration) would be appropriate.

If the Government wants a change, the Government can approach the contractor and try to negotiate for such. An exchange of consideration (an increase or decrease in contract price or some other consideration) would be appropriate.

10 hours ago, Contracts98754 said:

say you have an FFP contract and are purchasing a manufactured item. The milestones include the manufacturing plan, delivery and acceptance. What is your take when a contractor is expected to miss the delivery date due to their subcontractor delaying shipment of parts? The contractor is asking for an extension so it doesn’t reflect poorly on them. Do you grant the extension given it’s a reasonable timeframe and the contractor explained they ordered parts on time etc? Or just document the file of all of this and let them lapse? They will lapse whether an official extension is granted or not. I have gone back and forth about this and am now over thinking it

Emphasis added.

The contractor is responsible for breaches by its subcontractor. You can grant the extension by supplemental agreement, but you must obtain consideration from the contractor. Consideration could be in the form of a price reduction or something else of value. On the other hand, you could terminate for default if the contractor has no contractual excuse and you don't want to continue under contract. It's up to you as the buyer to decide. I must point out that this is basic contract law and in accord with the terms of government supply contracts.

11 hours ago, Contracts98754 said:

And what if it’s our fault and say they were going to deliver on time and we wanted to reschedule for two weeks out because the people who need to be present are on travel or the room isn’t ready for them?

If the delay is caused by the government, then the shoe may be on the other foot unless there is a contract term that permits the government to unilaterally change deliver dates. Generally, the contractor is entitled to an appropriate price adjustment and extension in the case of a government-cased delay.

Read your contract.

Just an added note. If the contract is subject to CPARS reporting and regardless of whether the contractor is at fault/responsible or not the route taken (forbearance, contract mod, default, cause whatever) should be noted in CPARS inclusive of a narrative as to the delay and actions of the parties. I would suggest that both reporting areas of CPARS regarding "Schedule" and "Management" would most likely end up with reporting information on the matter.

Contracts, Vern gave you good advice about reading the contract. You did not say whether the contract was for commercial products or non-commercial products. This matters because of the default provision in the contract. If FAR 52.249-8 is in the contract, suggest you read it for what it says concerning defaults of subcontractors. This might be a little more complicated than you seem to be thinking.