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    How does the PCO determine the HARM to the government for the Failed FAAT as well as the one year delay? Is there FAR guidance? Is there a formula?


    Typically if harm to the Government was a major concern, a liquidated damages clause would have been used in this contract (ref. FAR Subpart 11.5). However, that doesn't appear to be the case here. The Government can continue to work with the contractor until an acceptable first article is delivered or terminate the contract and start over. Because this is a firm-fixed-price contract, the contractor should be motivated to expeditiously work towards completion, as this delay is costing them money.

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