5-8.10 Compensable Delays

A supplier may be granted an extension of the contract delivery or performance schedule, a price adjustment, or both, as the purchase/SCM team, represented by the CO, deems appropriate, when an unreasonable delay in performance is caused by the Postal Service or is under its control, or when it has agreed to pay the supplier for the delay. Situations that may entitle the supplier to an equitable adjustment (schedule, cost, or both) include:

• Delay in issuing the notice to proceed.
• Delay in availability of the site.
• Differing site conditions.
• Actual or constructive changes or delays.
• Delay in providing funding.
• Delay in inspections.
• Delay in issuing changes.
• Delay in providing Postal Service-furnished equipment.
• Failure to perform by other Postal Service suppliers.

The supplier has the burden of proof in establishing the basis for the equitable adjustment required to overcome the delay. When a delay is attributable to both the Postal Service and the supplier, a contract delivery or performance schedule adjustment should not normally be granted for a period of delay caused at least in part by actions or failures on the part of the supplier. However, damages may not be assessed against the supplier in these situations.