42.1303 Stop-work orders
Source: FAR 42.1303 on acquisition.gov
Stop-work orders provide a formal mechanism to temporarily suspend contract work, but require higher-level approval, clear instructions, and timely follow-up actions to ensure compliance and minimize costs.
Overview
FAR 42.1303 outlines the procedures and requirements for issuing stop-work orders in negotiated fixed-price or cost-reimbursement supply, R&D, or service contracts. Stop-work orders are used when it may be necessary to temporarily halt work due to reasons such as technological advancements, engineering breakthroughs, or program realignment. The regulation specifies that stop-work orders should only be used when suspension is needed pending a government decision and a supplemental agreement is not feasible. Approval for issuing a stop-work order must come from a level higher than the contracting officer, and these orders should not replace termination notices. The order must clearly describe the suspended work, provide instructions for materials and subcontracts, and suggest ways to minimize costs. After issuance, the contracting officer must promptly discuss the order with the contractor and make modifications if needed. Before the order expires, the contracting officer must decide whether to terminate the contract, cancel the order, or extend it (with contractor agreement and proper approvals).
(a) Stop-work orders may be used, when appropriate, in any negotiated fixed-price or cost-reimbursement supply, research and development, or service contract if work stoppage may be required for reasons such as advancement in the state-of-the-art, production or engineering breakthroughs, or realignment of programs.
(b) Generally, a stop-work order will be issued only if it is advisable to suspend work pending a decision by the Government and a supplemental agreement providing for the suspension is not feasible. Issuance of a stop-work order shall be approved at a level higher than the contracting officer. Stop-work orders shall not be used in place of a termination notice after a decision to terminate has been made.
(c) Stop-work orders should include-
(1) A description of the work to be suspended;
(2) Instructions concerning the contractor’s issuance of further orders for materials or services;
(3) Guidance to the contractor on action to be taken on any subcontracts; and
(4) Other suggestions to the contractor for minimizing costs.
(d) Promptly after issuing the stop-work order, the contracting officer should discuss the stop-work order with the contractor and modify the order, if necessary, in light of the discussion.
(e) As soon as feasible after a stop-work order is issued, but before its expiration, the contracting officer shall take appropriate action to-
(1) Terminate the contract;
(2) Cancel the stop-work order (any cancellation of a stop-work order shall be subject to the same approvals as were required for its issuance); or
(3) Extend the period of the stop-work order if it is necessary and if the contractor agrees (any extension of the stop-work order shall be by a supplemental agreement).