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  • Question

    How do I proceed? I have prepared a mod for no-cost cancellation to the contract, is this correct? Do I need to do a determination and findings or MFR for the no-cost cancellation? Are there any posting requirements for the no-cost cancellation or award to next offeror?


    Answer

    1) Is your intent to "cancel" the contract by Termination for Convenience or Termination for Default? The Government enjoys different rights and remedies under either method. See FAR 52.212-4(l)-(m).

    2) Or, is your intent to "cancel" by issuing a deductive change that effectively zeroes-out the contract requirements? If so, this is an important topic to discuss with legal counsel. Note: your question stated you awarded a “multiyear requirements contract,” however I assumed you have a multiple-year contract that includes a base period plus option(s).

    3) Regardless of either Termination for Default or Termination for Convenience, your situation will involve a re-procurement. Consider the policies regarding Terminations of your service component's acquisition supplement, HCA policies and local polices.

    4) Consider why the Successful Offeror and firm who was awarded the contract subsequently could not perform to contract terms and conditions. Did your solicitation consider factors like COVID-19 and is it possible other offerors may have similar situations that hinder conformance with contract requirements? If offers were submitted before the COVID-19 pandemic, then there is reason for you to carefully determine the responsiveness and responsibility of offerors (this is a form of ongoing market research and market surveillance).

    5) Follow requirements for Synopsis based on the re-procurement approach.

    In closing, what appears a simple scenario involves some careful decisions and coordination with legal counsel.

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