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  • Question

    I have looked in the FARS, DFARS, AFFARS for anything that talks about consideration and how we come up with a $ amount but can not find anything. Can you point me in the right direction.


    Answer

    There is no formula for calculating the consideration (monetary or nonmonetary) amount for a late delivery. Consideration might take the form of a reduction in the unit price(s), a longer warranty period, or more supplies to be delivered under the contract.

    Usually when a contractor misses a delivery date it is proper to seek consideration for the late delivery as you establish a new delivery date(s) in the contract.  The problem here, and this is without knowing all the facts, is your statement that the contractor was given two previous delivery extensions without any consideration. This might be case of "forbearance" which will give you little leverage to ask for consideration if the contractor later misses the delivery date(s).

    Since we can't give you legal advice, we recommend that you consult with your procurement attorney before taking any further action. 


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