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NASCLAContractsmedium27% of exam part

A subcontract expressly requires invoice, insurance and storage evidence before a stored-equipment amount may be certified for payment. That backup is missing. What should payment review do with that portion?

Correct Answer

D) Hold that portion until required backup is provided

Request the missing evidence and do not certify the unsupported stored-equipment amount until the stated payment conditions are met. Continue handling undisputed amounts under the applicable payment requirements. FAR 52.232-5(b) illustrates documentary support on federal contracts; it is not a universal private-contract payment rule. Source: https://www.acquisition.gov/far/52.232-5

Answer Options
A
Approve it automatically because it appears on an invoice total
B
Treat the unsupported amount as liquidated damages
C
Delete all retainage without checking the stored-equipment evidence
D
Hold that portion until required backup is provided

Why This Is the Correct Answer

Request the missing evidence and do not certify the unsupported stored-equipment amount until the stated payment conditions are met. Continue handling undisputed amounts under the applicable payment requirements. FAR 52.232-5(b) illustrates documentary support on federal contracts; it is not a universal private-contract payment rule. Source: https://www.acquisition.gov/far/52.232-5

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