49.100
Scope of subpart
FAR 49.100 establishes the foundational rules and responsibilities for terminating government contracts and outlines the procedures for post-termination actions and settlements.
Overview
- FAR 49.100 outlines the scope of Subpart 49.1, which addresses the authority and procedures for terminating government contracts, either for the convenience of the Government or for contractor default. It also covers the responsibilities of both contracting officers and contractors after a termination notice, as well as the general procedures for settling terminated contracts and forming settlement agreements.
Key Rules
- Termination Authority and Responsibility
- Contracting officers have the authority to terminate contracts in whole or in part, either for the Government's convenience or due to contractor default.
- Post-Termination Duties
- Both contractors and contracting officers have specific duties to fulfill after a notice of termination is issued.
- Settlement Procedures
- The subpart provides general procedures for settling contracts that have been terminated.
- Settlement Agreements
- Guidance is provided on forming settlement agreements following contract termination.
- Additional Principles
- Further details for fixed-price, cost-reimbursement, and default terminations are found in subparts 49.2, 49.3, and 49.4, respectively.
Responsibilities
- Contracting Officers: Must understand their authority to terminate contracts and follow prescribed procedures for issuing notices and settling terminations.
- Contractors: Must comply with post-termination requirements and participate in settlement processes.
- Agencies: Ensure oversight and adherence to termination and settlement procedures.
Practical Implications
- This section establishes the foundational rules for contract terminations, ensuring both parties understand their rights and obligations. It impacts daily contracting by providing a framework for handling contract terminations, which can be complex and require careful compliance. Common pitfalls include misunderstanding the authority to terminate or failing to follow required procedures after a termination notice.