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Risk Safety, Have Govt Contract Fees Reduced

Tish Kraft – (Courthouse News) – WASHINGTON – February 28, 2012 –  The Department of Defense may reduce or deny award fees to government contractors found to jeopardize the health or safety of government personnel, under an interim rule now adopted as final.

This rule also modifies the requirement that information on the final determination of award fee be entered into the Federal Awardee Performance and Integrity Information System.

Specifically, the DoD employee must: “Include in the evaluation criteria of any award-fee plan, a review of contractor and subcontractor actions that jeopardized the health or safety of government personnel, through gross negligence or reckless disregard for the safety of such personnel, as determined through-(1) Conviction in a criminal proceeding, or finding of fault and liability in a civil or administrative proceeding …; or (2) If a contractor or a subcontractor at any tier is not subject to the jurisdiction of the U.S. courts, a final determination of contractor or subcontractor fault resulting from a DoD investigation.”

Also: “In evaluating the contractor’s performance under a contract that includes the [reduction or denial clause], the contracting officer shall consider reducing or denying award fees for a period if contractor or subcontractor actions cause serious bodily injury or death of civilian or military government personnel during such period. The contracting officer’s evaluation also shall consider recovering all or part of award fees previously paid for such period. (Click HERE for original article)  (Click HERE this regulation and others)

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