42.900
Scope of subpart
Contractors must promptly notify the contracting officer if they file for bankruptcy, and agencies must follow established procedures to manage such situations.
Overview
- FAR 42.900 outlines the scope of Subpart 42.9, which addresses the policies and procedures for handling situations where a contractor files for bankruptcy. The section establishes the need for contractor notification and sets minimum agency requirements for responding to bankruptcy proceedings.
Key Rules
- Contractor Bankruptcy Notification
- Contractors must notify the contracting officer if they file a bankruptcy petition.
- Agency Response Requirements
- Agencies must follow minimum procedures when a contractor enters bankruptcy proceedings.
Responsibilities
- Contracting Officers: Must be informed of contractor bankruptcy and follow agency procedures.
- Contractors: Required to notify the contracting officer upon filing for bankruptcy.
- Agencies: Must adhere to minimum requirements for managing contracts affected by bankruptcy.
Practical Implications
- This section ensures that both contractors and agencies are aware of their obligations when bankruptcy occurs, helping to protect government interests and maintain contract continuity. Failure to notify or follow procedures can result in contract complications or legal issues.