This series of FAR summaries is meant to take a meaningful portion of the Federal Acquisition Regulations to ensure an easy-to-understand approach to maintain that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR 49.104 Duties Of Contractor After Receipt Of Notice Of Termination
This one’s easy, but there are some things you have to know.
Per FAR 49.101(a) the government declares termination, termination for convenience means the contractor will still get paid by way of negotiated settlement (FAR 49.2), but termination for default means you don’t (FAR 49.4).
General Requirements Of Termination
FAR 49.104(a)
Work must be stopped immediately. That means some work or all of it. If you are doing business with partners then they stop, too. This is either when some people take an early lunch and others don’t or you all go cry in your beer together.
FAR 49.104(b)
The contractor gives formal notice to their business partners to stop working if they’ve chosen to work with any. That’s an email with a follow-up text or the other way around if you want.
FAR 49.104(c)
Tell your Contracting Officer why you cannot stop immediately if you cannot. To quote many a fathers out there, “It better be a good goddamn reason!”
FAR 49.104(d)
Finish what the government tells you to if its a partial termination and notify them if cost of materials has went up to finish that because you will get paid for that.
FAR 49.104(e)
Leave the government property like you found it and return what you borrowed, if anything.
FAR 49.104(f)
Notify the Contracting Officer of any legal doings after notice of termination. This includes business partners.
FAR 49.104(g)
Settle up with business partners per directions of CO.
FAR 49.104(h)
Submit a settlement proposal to your CO if you cannot reach an agreement together.
FAR 49.104(i)
Give back to the government what they want back and throw away what they don’t.
Knowing is half the battle and performance is key.
I always discussed termination with my vendors and even told mine to call me if things were getting rough because a T4C looks a lot better than a T4D in CPARS (which I hated doing).
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.
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