Common use of Subsequent Determinations Clause in Contracts

Subsequent Determinations. The head of the contracting activity shall make subsequent determinations, after consultation with the cognizant comp- troller, as the operational area evolves into either a more stable or less stable environment. (i) If the head of the contracting ac- tivity determines that the operational area has evolved into a more stable en- vironment, the contracting officer shall notify, by issuance of a contract modification, each contractor per- forming in the operational area under review. The modification deactivates clause 252.232–7011 and activates the ap- plicable FAR Prompt Payment clause in the contract. (ii) If after deactivation of clause 252.232–7011, the head of the contracting activity subsequently determines that the operational area has evolved into a less stable environment, the head of the contracting activity will make a determination that conditions exist that limit normal business operations. The contracting officer will then reac- tivate clause 252.232–7011 by issuance of a contract modification. [75 FR 40713, July 13, 2010, as amended at 76 FR 11373, Mar. 2, 2011] DoD policy is to assist small business concerns by paying them as quickly as possible after invoices and all proper documentation, including acceptance, are received and before normal pay- ment due dates established in the con- tract (see 232.906(a)). [76 FR 23506, Apr. 27, 2011]