32.1008
Suspension or reduction of performance-based payments
Contracting officers must follow specific FAR procedures when suspending or reducing performance-based payments to ensure due process and consistency.
Overview
FAR 32.1008 outlines the procedures for suspending or reducing performance-based payments on government contracts. When the government exercises its rights to suspend or reduce such payments under the clause at 52.232-32, contracting officers must follow the policy and procedures specified in paragraphs (a), (b), (c), and (e) of FAR 32.503-6. These referenced paragraphs address the circumstances, notification requirements, and processes for withholding payments due to contractor performance issues or other specified reasons. This ensures consistency and due process when the government needs to take action on performance-based payments.
Key Rules
- Application of FAR 32.503-6 Procedures
- Contracting officers must use the suspension or reduction procedures from FAR 32.503-6(a), (b), (c), and (e) when acting under the performance-based payments clause.
- Reference to 52.232-32 Clause
- The government’s right to suspend or reduce payments is exercised according to paragraph (e) of the 52.232-32 clause, which is included in applicable contracts.
Responsibilities
- Contracting Officers: Must follow the specified FAR procedures when suspending or reducing performance-based payments and provide required notifications to contractors.
- Contractors: Should be aware of the conditions under which payments may be suspended or reduced and respond to government notifications as required.
- Agencies: Ensure contracting officers are trained and compliant with these procedures.
Practical Implications
- This section ensures due process and fairness when the government suspends or reduces performance-based payments.
- Contractors should maintain compliance and performance to avoid payment issues.
- Failure to follow proper procedures can result in disputes or claims.