Common use of Withholding of Incremental and Provisional Fee Clause in Contracts

Withholding of Incremental and Provisional Fee. In order to assure the Contractor’s ability to repay any Incremental and Provisional Fee Payments that are determined to be in excess of the total fee earned, the Contracting Officer reserves the unilateral discretion to discontinue Incremental and Provisional Fee payments, in the event that a guarantor company files bankruptcy, is acquired by other owners, or impacted by other events that arise with the Contractor’s guarantor company(ies) that can jeopardize DOE’s ability to recover excess Incremental Payment and Provisional Fee Payments. Withheld Fee Payments are not subject to interest for the amount(s) of the withheld fee payment(s) under 5 CFR 1315, Prompt Payment.