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  • Question

    What if any; penalties can an ACO or PCO impose? Also is there any FAR, DFAR regulation etc. that address the issues of late deliveries beyond the period of performance and how the customer should be compensated?


    Answer

    There is no real good answer for your question without more specifics. Where the contract is not in our hands we cannot tell you what provisions there are to apply penalties for late delivery. We would need to understand what contract type, category and clauses are incorporated within your contract.
     
    We can however give you generalities. Late deliveries are frowned upon greatly, we need what we need when we were promised it. If it is a commercial item they should be held to the delivery schedule and if they decide they are not going to adhere to these rules your Contracting Officer can assess them a negative past performance rating. This will hinder them from obtaining future work with the Federal Government and may be just the thing to motivate them to deliver on this contract.
     
    However, you are looking for something to motivate more aggressively. The only thing that we can tell you is that if there was liquidated damages agreed upon prior to award of this contract then make sure that they reimburse the government for the time they have held up their delivery.
     
    You may want to contract the Contracting Officer responsible for your contract and find out what has been done to date about the contractor's failure to deliver on time to date. You may find that remedies have already been enacted.
     
    The important thing is to thoroughly read your contract so that you know what authority the Contracting Officer has over your contractor, document the poor performance thoroughly, and communicate that performance to the Contracting Officer requesting that remedies be sought.

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