To obtain a price reduction the government must meet two conditions:

1. The deleted work was required under the extant contract. After a new specification was agreed to, departure from an earlier, more costly spec was not considered a deduction. On the other hand, relaxation of a technical spec is considered a deduction and a price reduction is in order

2. The contractor must enjoy cost savings. If the government cannot demonstrate or the contractor can show there is no cost savings, then the government is not entitled to a price reduction from the original contract price. Once the government has put forth a reasonable case for cost savings, the burden shifts to the contractor to rebut this contention.

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