[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: 48CFR342.7003-3]



[Page 71]

 

            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. 342.7003-3  Withholding payments.



    (a) When making the determination that contract payments should be 

withheld in accordance with the Withholding of Contract Payments clause, 

the contracting officer is to immediately notify the servicing finance 

office in writing of the determination to suspend payments. The notice 

of suspension is to contain all elements of information required by the 

payment office to properly identify the contract and the applicable 

accounts involved.

    (b) The contracting officer is to immediately notify the contractor 

in writing that payments have been suspended until the default or 

failure is cured.

    (c) When the contractor cures the default or failure, the 

contracting officer is to immediately notify, in writing, all recipients 

of the notice of suspension that the suspension is to be lifted and 

contract payments are to be resumed.

    (d) When exercising actions regarding the withholding of payment 

procedures, the contracting officer must be careful not to waive any of 

the Government's rights when corresponding with the contractor or when 

taking any other actions.