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  • Question

    Does the interest amount also get deducted from the contract or only the pricniple amount? If the interest is not deducted from the contract should it only be referenced in the narrative to show the total amount owed by the contractor? Example CLIN 0023AA Principle amount to repay :$1,046,589 Inerest amount: $197,939 Total amount from contractor: $1,244,528


    Answer

    You deduct the entire amount, including interest, from the contract, if possible. The contract modification must show the deduction for defective pricing, the amount of interest and the total amount being deducted- all separately just as you wrote it.

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