[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR342.7003-1]



[Page 70]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 342_CONTRACT ADMINISTRATION--Table of Contents

 

                   Subpart 342.70_Contract Monitoring

 

Sec. 342.7003-1  Policy.



    (a) All solicitations and resultant contracts shall contain the 

withholding of contract payments clause at 352.232-9, and an excusable 

delays clause, or a clause which incorporates the definition of 

excusable delays. The excusable delays clause at 352.249-14 shall be 

used when the solicitation and resultant contract (other than purchase 

orders) does not contain a default or other excusable delays clause.

    (b) The transmittal letter used to convey the contract to each 

contractor shall contain a notice which highlights the contractor's 

agreement with the withholding of contract payments clause.

    (c) No contract payment shall be made when any report required to be 

submitted by the contractor is overdue, or the contractor fails to 

perform or deliver work or services as required by the contract.

    (d) The contracting officer shall issue a ten-day cure notice or 

initiate appropriate termination action for any failure in the 

contractor's performance as stated in paragraph (c) of this section.