What action can a contracting officer take to correct excess unliquidated progress payments over the contractual limitation?

A contracting officer can increase the liquidation rate to correct excess unliquidated progress payments over the contractual limitation. By doing so, the officer accelerates the rate at which previously disbursed progress payments are offset against the contract value. This helps bring the unliquidated progress payments in line with the contractual limits established in the agreement.

In this context, it is important to recognize that the liquidation rate determines how much of the progress payments can be deducted from future payments as work progresses. Adjusting the liquidation rate allows the contracting officer to manage the financial flow related to the contract effectively and ensure compliance with contractual stipulations.

The other options do not provide a means to directly adjust the balance of unliquidated progress payments. For instance, decreasing the contract amount would potentially create further issues with the project's financial structure rather than resolving excess payments. Eliminating progress payments could hinder cash flow for contractors, making it unfeasible or detrimental to project completion. Similarly, increasing the contract scope does not directly address the issue of excess payments and could complicate the contract management process.