Sign In
  • Question

    When contracts are modified to extend the delivery date or period of performance, is the gov’t still paying for incentives for the original delivery dates? If the contract happens to be an incentive contract. How would one adjust a contract? The dates should be firm at the time of award.


    If a line item provides an incentive for on-time delivery and the contractor fails to meet the delivery date stipulated in the contract, then it's a matter of whether the missed delivery date is due to fault of the contractor or action/oversight by the Government. If the former, then the contractor has not earned the delivery incentive payment. If the latter, then that constitutes a constructive change. In that case, the modification issued to update the delivery schedule should mention (in block 14 of the SF 30) that the delivery incentive is tied to the revised delivery date.

    Open full Question Details
Chat with DAU Assistant
Bot Image