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Suspension of Progress Payments?


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If a contract contains FAR 52.232-16 and none of the conditions in paragraph ?, "Reduction or suspension" apply, can the CO reduce or suspend progress payments?

I have two answers.

1. If none of the conditions apply, then what rationale would the CO use?

2. Under proposed (not final) DFARS rule-making, not only would the CO have the authority to suspend progress payments, the CO would be required to reduce progress payments if contractor business systems were found to have significant deficiences.

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Guest Vern Edwards

If you haven't already done so, you should read FAR 32.503-6, Suspension or reduction of payments. Such an act is exceedingly serious and you should not do it unless you have valid and well-documented reasons.

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