The new KO does not want to T4C, since the POP expired a year ago, and has insufficient documentation to support a T4D. Instead, can the contract CLINs be revised to allow for payment of work completed & accepted only, remaining funds de-obligated and contract closed? If so, what authority can the KO cite if not FAR 52.249? Does this fall under 52.243?
If you do a Bi-lateral modification of the Contract you need to make sure you still abide by Fiscal law and have a complete and usable facility. If you cannot have a complete and usable facility, and sounds like there is no longer a bonafide need, then you would need to T4D.
Open full Question Details