Subpart 5149.1 -- Termination of Contracts
Subpart 5149.4 -- Termination for Default
Subpart 5149.70 -- Special Termination Requirements
AFARS -- Part 5149
Termination of Contracts
Subpart 5149.1 -- Termination of Contracts
5149.101 -- Authorities and Responsibilities.
(b)
(i) Contracting officers should exercise the authority to terminate a contract for convenience of the Government only after proper authorization and instructions from the activity which requested that the contract be established.
(ii) Contracting officers should not terminate any contract for convenience if the contractor is in inexcusable default and the Government has a legal right to terminate for default, even if the Government's requirements for performance no longer exist. This prohibition does not preclude a no-cost termination settlement agreement as provided for at FAR 49.402-4(c).
(iii) Terminate contracts resulting from MIPRs in accordance with DFARS 208.7004-6 and 208.7004-7.
5149.107 -- Audit of Prime Contract Settlement Proposals and Subcontract Settlements.
(a) Within five calendar days after receipt from the contractor, send electronically all settlement proposals to the responsible audit office, including inventory and accounting information and related documents.
Subpart 5149.4 -- Termination for Default
5149.402 -- Termination of Fixed-Price Contracts for Default.
5149.402-3 -- Procedure for default.
(e)
(4) Contracting officers should not terminate for default any contract with a small business firm to whom a Certificate of Competency was issued, or to whom loans were made with SBA's participation, without prior written approval of the HCA.
(f)
(6) When unliquidated progress payments, advance payments, guaranteed loans, or anticipated excess repurchase costs are involved, the contracting officer must:
(A) Obtain from the ACO a statement of the value of the inventory that may be available for offset against the outstanding financing.
(C) Identify and state the approximate amount of the excess acquisition costs applicable.
Subpart 5149.70 -- Special Termination Requirements
5149.7001 -- Congressional Notification on Significant Contract Terminations.
(c) Send the clearance request through the HCA directly to the addressee at 5101.290(b)(10) or by facsimile at DSN 227-6988 or (703) 697-6988.
5149.7002 -- Notification and Reporting of Substantial Impact on Employment.
(a) The contracting officer must send the notification through the HCA to the Office of Economic Adjustment; send a copy of the notification by facsimile to the U.S. Army Contracting Support Agency, Attn: SFAE-CSA-PPS, at DSN 761-2304 or (703) 681-2304.