Sign In
  • Question

    Can the contract be terminated? For Convenience. For Cause. For meeting the obligatory minimum. or other reasons.


    Answer

    This response is based on the information provided.  We suggest you discuss with your contract administrator and/or legal department and the government contracting officer as appropriate. 
     

    You do not need to terminate the contract, you should simply order nothing more on the contract.  The government, having met its minimum requirement, is under no obligation to issues further task orders. 
    If the question is directed to individual orders, those can be terminated for default/cause or convenience.  You did not say if this was commercial (FAR part 12) or non-commercial (FAR part 15).  That does not change things significantly. 

    If commercial, you would follow the direction of Clause
    FAR 52.212-4 in your contract and the guidance of FAR part 49 to execute a termination for cause. 

    If non-commercial, you would follow the direction of the
    FAR 52.249-XX clauses in your contract to execute a termination for default. 

    Termination for default/cause can be executed if the government has adequately documented and sent appropriate notices per
    FAR part 49.  If the government begins with termination for convenience, the government is saying that we no longer need the services, or we no longer have the funds to acquire them. 

    It appears you have the basis for a termination for default/cause of individual task orders.

     


    Open full Question Details
Chat with DAU Assistant
Bot Image