49.601
Notice of termination for convenience
FAR 49.601 requires contracting officers to use prescribed electronic or letter formats when issuing a notice of termination for convenience, ensuring clear and standardized communication.
Overview
FAR 49.601 addresses the requirements for issuing a notice of termination for convenience to contractors. This section references two specific formats for providing such notice: electronic notice (49.601-1) and letter notice (49.601-2). The purpose is to ensure that contracting officers use the correct method and format when informing contractors that the government is terminating a contract for convenience, as opposed to termination for default (which is covered separately in FAR 49.402-3(g)). This section is part of Subpart 49.6, which provides standardized forms and formats for contract terminations.
Key Rules
- Notice of Termination for Convenience
- Contracting officers must issue a formal notice when terminating a contract for convenience, using either electronic or letter formats as specified in subsequent sections.
- Reference to Termination for Default
- Notices for termination due to default are governed by a different section (49.402-3(g)), not this one.
Responsibilities
- Contracting Officers: Must select and use the appropriate notice format (electronic or letter) when terminating a contract for convenience, ensuring compliance with the prescribed procedures.
- Contractors: Should be aware of the notice formats and their implications for contract closeout and settlement.
- Agencies: Must ensure that contracting officers are trained and follow the correct procedures for issuing termination notices.
Practical Implications
- This section ensures clarity and consistency in how terminations for convenience are communicated, reducing confusion and potential disputes.
- Contractors should promptly review any notice received to understand their rights and obligations following termination.
- Failure to use the correct notice format could result in administrative delays or challenges to the termination process.