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The Government, at its election, may reduce the price of a fixed-price type contract and the total cost and fee under a cost-type contract by the amount of profit or fee determined as set forth in paragraph (b) of this clause if the head of the contracting activity or designee determines that there was a violation of <xref href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
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format="html"
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class="- topic/xref ">41 U.S.C.2102</xref> or 2103, as implemented in section <xref href="3.104.dita#FAR_3_104"
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class="- topic/xref ">41 U.S.C. 2102</xref> or 2103, as implemented in section <xref href="3.104.dita#FAR_3_104"
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class="- topic/xref ">3.104</xref> of the Federal Acquisition Regulation.</p>
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<li class="- topic/li ">
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<p class="- topic/p " id="d3065e32">
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<ph props="autonumber" class="- topic/ph ">(b)</ph>
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The price or fee reduction referred to in paragraph (a) of this clause shall be
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The price or fee reduction referred to in paragraph (a) of this clause shall be—</p>
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<ph props="autonumber" class="- topic/ph ">(3)</ph>
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For cost-plus-award-fee contracts
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For cost-plus-award-fee contracts—</p>
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<ph props="autonumber" class="- topic/ph ">(4)</ph>
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For fixed-price-incentive contracts, the Government may
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For fixed-price-incentive contracts, the Government may—</p>
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<ph props="autonumber" class="- topic/ph ">(c)</ph>
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The Government may, at its election, reduce a prime contractor
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The Government may, at its election, reduce a prime contractor's price or fee in accordance with the procedures of paragraph (b) of this clause for violations of the statute by its subcontractors by an amount not to exceed the amount of profit or fee reflected in the subcontract at the time the subcontract was first definitively priced.</p>
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