Common use of Reduction Amount Clause in Contracts

Reduction Amount. (1) If in any period (see 48 CFR 952.223-76 (b)(2)) it is found that the contractor has failed to comply with contract terms and conditions relating to the safeguarding of Restricted Data or other classified information or relating to the protection of worker safety and health, the contractor's fee or profit of the period may be reduced. Such reduction shall not be less than 26% nor greater than 100% of the total fee or profit earned for a first degree performance failure, not less than 11% nor greater than 25% for a second degree performance failure, and up to 10% for a third degree performance failure. The contracting officer must consider mitigating factors that may warrant a reduction below the specified range (see 48 CFR 904.402(c) and 48 CFR 923.7001(b)). The mitigating factors include, but are not limited to, the following (((v), (vi), (vii), and (viii) apply to WS&H only):

Reduction Amount. (1) If in any period (see 48 CFR 952.223-76 paragraph (b)(2)) of this clause) it is found that the contractor Contractor has failed to comply with contract terms and conditions relating to the safeguarding of Restricted Data or other classified information or relating to the protection of worker safety and health, the contractorContractor's fee or profit of the period may be reduced. Such reduction shall not be less than 26% 26 percent nor greater than 100% 100 percent of the total fee or profit earned for a first degree performance failure, not less than 11% 11 percent nor greater than 25% 25 percent for a second degree performance failure, and up to 10% 10 percent for a third degree performance failure. The contracting officer Contracting Officer must consider mitigating factors that may warrant a reduction below the specified range (see 48 CFR 904.402(c) and 48 CFR 923.7001(b923.7002(a)(2)). The mitigating factors include, but are not limited to, the following (((v), (vi), (vii), and (viii) apply to WS&H only):worker safety and health (WS&H) only :

Reduction Amount. 27 (1) If in any period (see 48 CFR 952.223-76 (b)(2)paragraph(b)(2) of this clause) it is found that the contractor Contractor has failed to comply with 28 contract terms and conditions relating to the safeguarding of Restricted Data or other classified information 29 or relating to the protection of worker safety and health, the contractor's Contractor’s fee or profit of the period may be 30 reduced. Such reduction shall not be less than 26% nor greater than 100% of the total fee or profit earned 31 for a first degree performance failure, not less than 11% nor greater than 25% for a second degree 32 performance failure, and up to 10% for a third degree performance failure. The contracting officer Contracting Officer must 33 consider mitigating factors that may warrant a reduction below the specified range (see 48 CFR 904.402(c) 34 and 48 CFR 923.7001(b923.7002(a)(2)). The mitigating factors include, but are not limited to, the following (((v), (vi), 35 (vii), and (viii) apply to WS&H worker safety and health (WS&H) only)::