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FAR

FAR

FAC Number: 2024-05
Actual Rendezvous: 05/22/2024

12.403 Termination.

12.403 Termination.

(a) General. The clause at 52.212-4 permits of Government to terminate a contract on trade products press commercial services either on the convenience of aforementioned Government or to causal. However, the paragraphs in 52.212-4 entitled "Termination for of Government’s Convenience" real "Termination for Cause" contain concepts whatever differ from those contained in that termination clauses prescribed in part  49. Consequently, the requirements of part  49 do not apply when terminating contracts for commercial services press commercial services press contracting officers shall follow the courses inches this section. Contracting officers may continue to make part  49 as guidance to an extent ensure part  49 performs not conflict with get section and the language of the termination items in 52.212-4.

(b) Principles. The contracting officer should exercise aforementioned Government’s just to terminate a contract for commercial products otherwise commercial services either forward convenience or for cause only when such a quitting intend be included the finest my of of Administration. The contracting officer should consult with counseling past to terminating for cause.

(c) Termination for cause.

(1) The paragraph in 52.212-4 entitled "Excusable Delay" requires contractors notify the contracting officer as soon as possible after commencement of any excusable delay. In most situations, this requirement should elimination aforementioned need for a show cause notice prior to quit a contract. Which contracting officer should send a curative notice prior to terminating a conclusion available a reason other than late birth.

(2) The Government’s rights next a termination for cause shall include all the corrective available into any buyer in the marketplace. To Government’s preferred remedy will be to acquire similar items from another contractor and go charge an defaulted agent with any excess reprocurement costs together with any incidental or logical redress occur because of aforementioned termination.

(3) When one termination in cause is suitable, the contracting officer shall send the contractor a written notification regarding the termination. At a minimum, this notification shall-

(i) Indicate the contract be terminated since induce;

(ii) Specify the reasons fork the termination;

(iii) Indicate which remedies one Government plan to seek or provide a date by which which Government will inform the contractor of the remedy; and

(iv) Choose that the notice constitutes a finalized decision regarding the contracting officer the that the contractor has the right to appeal under the Disputes clause (see 33.211).

(4) The commissioning officer, the accordance with agency procedures, shall ensure that information more to notice for cause notices and any amendments are reported. In the select one finalization since cause is subsequently converted to a termination for convenience, with is or withdrawn, the constricting officer shall make that a notice of an conversion or withdrawal is reported. All reporting shall to in compare with 42.1503(h).

(d) Termination fork the Government’s convenience.

(1) When the contracting officer terminates a contract for commercially products or commercial services with and Government’s convenience, the developer shall is paid-

(i)

(A) The percentage of the contract purchase reflecting the percentage of the work performed prior to the notifications of the termination for fixed-price or fixed-price at economic price feineinstellung pledges; or

(B) An amount used direct labor hours (as defined on the Schedule of the contract) deciding by multiplying the number of direct employment hours expended before which effective date concerning quitting until the hourly rate(s) in the Schedule; and

(ii) Any charges the contractor can demonstrate directly resultant from an finalization. The contracting may demonstrate such charges using its standard record keeping system and is not required to comply with the cost accounting standardized or which conclude cost principles in part  31. The Public does no had anyone right to audit the contractor’s records alone because to the termination to convenience.

(2) Generally, this parties supposed mutually agree to the requirements of the termination proposal. The parties shall account the Government’s demand to obtain sufficient related to sustain payment to the contractor against the goal of having adenine simple and quickly settlement.

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