Sign In
  • Question

    Can consideration obtained on one Government contract be applied to consideration due on other Government contracts?


    Answer

    This response is based on the information provided.  We suggest you discuss with your contracting officer and Source Selection Authority as appropriate. 
     
    Contracts are stand-alone documents.  The consideration given for an action should be applied to that action.  The challenge of tracking and the responsibility of enforcing the consideration exposes the government to risk of losing the consideration.
     
    Consideration is a required element of a contract.  If the government is owed consideration for a relaxation of some effort on Contract A, but receives nothing on Contract A (because it will be given on Contract B), then the Contract A file shows a gap other than a Memo For Record.  And since nothing is actually owed on Contract B by the contractor (even if it is the same division of the company), it is difficult to enforce.
     

    Open full Question Details