PART 5349 –
Termination of Contracts

2019 Edition

Revised: 2 May 2022

Table of Contents

PART 5349 – Termination of Contracts 1

SUBPART 5349.1 – GENERAL PRINCIPLES 1

5349.101 Authorities and Responsibilities 1

5349.102 Notification of Termination 1

SUBPART 5349.4 – TERMINATION FOR DEFAULT 2

5349.402-3 Procedure for Default 2

5349.402-6 Repurchase Against Contractor’s Account 2

SUBPART 5349.5 – CONTRACT TERMINATION CLAUSES 2

SUBPART 5349.70 – SPECIAL TERMINATION REQUIREMENTS 2

5349.7001 Congressional Notification on Significant Contract Terminations 2

5349.7003 Notification of Anticipated Terminations or Reductions 2

SUBPART 5349.1 – GENERAL PRINCIPLES

5349.101 Authorities and Responsibilities

(b) The SCO or command-appointed termination contracting officer (TCO) must approve a termination for default or cause prior to a contracting officer taking the action. When requesting approval, the contracting officer must provide all relevant documents to include a chronology of key events, cure/show cause notices and responses thereto.

5349.102 Notification of Termination

See the tailorable Termination Authority template.

SUBPART 5349.4 – TERMINATION FOR DEFAULT

5349.402-3 Procedure for Default

(f) Prior to making a final decision concerning termination for default, the contracting officer must forward the termination notice and the complete contract file to AF/JACQ with a copy of the termination notice to SAF/GCR and follow the procedures in AFFARS 5333.291(b).

5349.402-6 Repurchase Against Contractor’s Account

(c) The contracting officer must provide copies of assessments of excess reprocurement costs through the SCO to AF/JACQ.

SUBPART 5349.5 – CONTRACT TERMINATION CLAUSES

5349.501-70 Special Termination Costs

(a) See MP5301.601-90. Submit requests through the SCO to SAF/AQC for approval.

(c) The contracting officer must forward a request for SAF/FM approval through their SCO and SAF/AQC prior to authorizing any increase in the Government's maximum liability under the clause. SAF/AQC will forward the request to SAF/FM.

SUBPART 5349.70 – SPECIAL TERMINATION REQUIREMENTS

5349.7001 Congressional Notification on Significant Contract Terminations

The contracting officer must submit the proposed Congressional notification through the SCO to SAF/AQC at least five workdays before the proposed termination date. The SAF/AQC action officer will forward the information to SAF/LLP. The contracting officer must not release the termination notice until Congress has been notified (see "AFFARS-MP_PART-mp_5349.docx" MP5349).

5349.7003 Notification of Anticipated Terminations or Reductions

(b)(2)(i) The contracting officer must submit the draft notification through the SCO to SAF/AQC as soon as the proposed termination/reduction is known. SAF/AQC will forward the notification to SAF/AQ for signature (see HYPERLINK "mp_5349.docx").