Program Management Performance Deductions Clause Samples

Program Management Performance Deductions. The Government will hold a semi-annual evaluation meeting with the Contractor to discuss performance deductions, if any, and other problems or issues with the Contractor’s performance and the necessity or potential for improvement. Meetings may also be held with the Contractor on a more frequent basis to provide feedback on interim findings by the COTR. Based on the Government’s semi-annual performance evaluation, the Government may make price deductions computed in accordance with the methodology set forth. The Government may unilaterally reduce the amount of payment of invoices submitted by the Contractor to implement the price deductions. In addition, the Government may unilaterally reduce the FFP for the respective TO in order to implement the price deductions. In either event, the Government will provide prior written notice to the Contractor of the price deductions by providing a copy of the Government’s evaluation reports, or by other means. Price deductions for less than optimal performance will be administered in the areas of Quality and Program Management. Price deductions will also be administered for unfilled vacancies as delineated in Clause G.5, Consideration and Payment, paragraph c. All quality performance deductions are based on the cumulative value of all TOs for that reporting period (exclusive of Other Direct Costs (ODCs)). During semi-annual reviews the following factors will be assessed to determine the price deductions, if any.