Under a cost-reimbursement or time and materials contract, which statement is FALSE?

The statement that payments are guaranteed regardless of performance is considered false in the context of cost-reimbursement or time and materials contracts. While these types of contracts do provide for the reimbursement of allowable costs incurred by the contractor, payment is not unconditional. Payment also depends on the contractor meeting specific performance criteria outlined in the contract. The government must still validate that the work performed meets the contract requirements and that costs incurred are allowable and reasonable.

In cost-reimbursement contracts, it is essential for the contractor to perform the work as specified, and the COR plays a vital role in monitoring performance and approving invoices based on that performance. Therefore, while costs can be reimbursed, the contractor is still expected to deliver satisfactory results, which directly influences their payment.

The other statements in the question reflect accurate practices in managing cost-reimbursement and time and materials contracts, emphasizing the importance of active oversight and communication between the COR and the contractor.