49.102
Notice of termination
All contract terminations must be communicated in writing with clear instructions, proper distribution, and documented confirmation of receipt to ensure compliance and protect all parties.
Overview
FAR 49.102 outlines the procedures and requirements for issuing a notice of termination for government contracts, whether for convenience or default. The regulation mandates that all terminations must be communicated in writing, with specific methods for delivery and confirmation of receipt. The notice must include essential information such as the reason for termination, effective date, extent, special instructions, and guidance for workforce impact if applicable. The contracting officer is responsible for distributing copies to relevant parties and may amend or rescind the notice under certain conditions. Additionally, terminated contracts may be reinstated if justified and agreed upon by both parties.
Key Rules
- Written Notice Requirement
- All contract terminations must be issued in writing, with confirmation of receipt by the contractor.
- Notice Content
- The notice must specify the reason, effective date, extent, special instructions, and workforce impact steps if significant reductions are expected.
- Distribution of Notice
- Copies must be sent to the contractor, contract administration office, and any known assignee, guarantor, or surety.
- Amendment and Rescission
- The contracting officer may amend the notice to correct errors, add information, or rescind if items were completed or shipped before receipt.
- Reinstatement
- Terminated contracts can be reinstated if both parties agree and it is advantageous to the government.
Responsibilities
- Contracting Officers: Must issue, distribute, and amend termination notices as required, and document reinstatement decisions.
- Contractors: Must acknowledge receipt and follow instructions in the notice, including steps to minimize workforce impact.
- Agencies: Ensure oversight of termination procedures and proper documentation.
Practical Implications
- Ensures clear, documented communication of contract terminations.
- Protects both government and contractor interests by specifying procedures and required information.
- Common pitfalls include failure to confirm receipt, incomplete notice content, or improper distribution of copies.