Technical Data Declaration, Revision, and Withholding of Payment-Major Systems
Contractors must deliver complete, accurate technical data with a formal declaration and promptly address any deficiencies or revisions to avoid payment withholding on major system contracts.
Overview
FAR 52.227-21 establishes requirements for contractors delivering technical data related to major systems under government contracts. It mandates that all such technical data be accompanied by a formal declaration of completeness, accuracy, and compliance. The clause also requires contractors to correct deficiencies and revise technical data to reflect engineering changes upon the Contracting Officer’s request. The Government may withhold payment—up to $100,000 or 5% of the contract value—if the contractor fails to deliver data, provide the required declaration, correct deficiencies, or make requested revisions. The clause ensures the Government receives accurate, up-to-date technical data for major systems and provides mechanisms to enforce compliance before final payment is made.
Key Rules
- Technical Data Declaration
- All delivered technical data must include a signed declaration attesting to its completeness, accuracy, and compliance with contract requirements.
- Correction of Deficiencies
- Contractors must correct any deficiencies in technical data at their own expense if directed by the Government.
- Revision of Technical Data
- Contractors must revise technical data to reflect engineering changes affecting form, fit, or function, and may request equitable adjustment for such revisions.
- Withholding of Payment
- The Contracting Officer may withhold up to $100,000 or 5% of the contract value if the contractor fails to meet technical data requirements, until compliance is achieved.
Responsibilities
- Contracting Officers: Monitor technical data delivery, request corrections or revisions, and withhold payment if requirements are not met.
- Contractors: Deliver technical data with required declaration, correct deficiencies, revise data as requested, and ensure timely compliance to avoid payment withholding.
- Agencies: Oversee contract compliance and enforce technical data requirements.
Practical Implications
This clause ensures the Government receives reliable technical data for major systems, supports contract oversight, and provides leverage to enforce contractor compliance. Contractors must maintain rigorous data management and timely response to Government requests to avoid payment delays or disputes.