509.405-1 Continuation of current contracts.
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(a) When a contractor appears as a current exclusion in the System for Award Management (SAM), consider terminating a contract under any of the following circumstances:
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(1) Any circumstances giving rise to the debarment or suspension also constitute a default in the contractor’s performance of the contract.
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(2) The contractor presents a significant risk to the Government in completing the contract.
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(3) The conduct that provides the cause of the suspension, proposed debarment, or debarment involved a GSA contract.
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(b) Before terminating a contract when a contractor appears as a current exclusion in the SAM, consider the following factors:
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(1) Seriousness of the cause for debarment or suspension.
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(2) Extent of contract performance.
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(3) Potential costs of termination and reprocurement.
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(4) Need for or urgency of the requirement, contract coverage, and the impact of delay for reprocurement.
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(5) Availability of other safeguards to protect the Government’s interest until completion of the contract.
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(6) Availability of alternate competitive sources to meet the requirement (e.g., other multiple award contracts, readily available commercial items.)
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(c) The responsibilities of the agency head under FAR 9.405-1 are delegated to the Senior Procurement Executive.