Pursuant to the text of the price reduction clause, by what dollar amount should the contracting officer reduce the contract price, excluding any interest and penalty? You must show how you derived your answer from specific words in the clause and on what words you relied. "Common sense" or "it's obvious" are not acceptable justifications without reference to specific words in the contract clause. 

Explain how you calculated the amount and show any arithmetic. $0.00 is a permissible answer. 

(2) Should you seek the payment of interest? 

(3) Should you seek payment of a penalty?