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  • Question

    What authority does the contracting officer have to descope and deobligate the funds for these options so as not to cause excessive rework or spending? Since the contracting officer has verfied that no progress has been made on these options, can they be deobligated at their awarded price? Or are negotiations of this descope necessary?


    Answer

    An option on a construction contract was awarded, however, work has not started and you no longer want the work done at this time because of BASH hazards.  You would need to do a partial termination, terminating the option you exercised.  You might be able to get the contractor to agree to a no cost termination if no work has been done. If they do not agree to a no cost termination you will need to do a termination for convenience.  If no work has been done you could deobligate a portion, but you want to make sure you still have enough obligated to cover the termination for convenience.  Once you settle the termination for convenience you may deobligate the remaining funds.

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