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  • Question

    Can we withhold PBPs until the Contractor is back on schedule?


    Answer

    Take a look at 52.323-32(e).  It says the Contracting Officer may reduce or suspend performance based payments for any of the following conditions; (2) Performance of this contract is endangered by the Contractor’s (i) failure to make progress.  Therefore, yes, the Contracting Officer may suspend performance based payments.

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