Common use of Temporary Reduction of Downpayment Clause in Contracts

Temporary Reduction of Downpayment. When, under I.3.3, Contracting Officer requests Contractor to delay or interrupt Contractor’s Operations for more than 90 days, the downpayment amount being held on deposit may be temporarily reduced upon the written request of Contractor or at the discretion of Contracting Officer. For the period of the delay or interruption, the downpayment on deposit may be reduced to $1,000 or two (2) percent of the downpayment amount listed in A.18, whichever is larger. Any downpayment amount temporarily reduced pursuant to this Subsection may be refunded or transferred at the request of Contractor. However, if Contractor has outstanding debt owing the United States, Contracting Officer must apply the amount of downpayment that could be refunded to the debt owed in accordance with the Debt Collection Improvement Act, as amended (31 USC 3701, et seq.).

Temporary Reduction of Downpayment. When, under I.3.3IT.3.3, Contracting Officer requests Contractor Contrac- tor to delay or interrupt Contractor’s Operations for more than 90 days, the downpayment amount being held on deposit de- posit may be temporarily reduced upon the written request of Contractor or at the discretion of Contracting Officer. For the period of the delay or interruption, the downpayment on deposit may be reduced to $1,000 or two (2) percent of the downpayment amount listed in A.18AT.15, whichever is larger. Any downpayment amount temporarily reduced pursuant to this Subsection may be refunded or transferred at the request of Contractor. However, if Contractor has outstanding debt owing the United States, Contracting Officer must apply the amount of downpayment that could be refunded to the debt owed in accordance with the Debt Collection Improvement Act, as amended (31 USC 3701, et seq.).