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    I recently received a purchase request for online training. The announcement states that there is a 25% cancellation fee and that there are no valid reasons for cancellation other than the school cancelling. This is the only course available because of pandemic. Are there any governing regulations against processing cancellation fees with the GCPC?


    Answer

    Great question:

    I could not find any DoD Purchase Card Policy Memorandums that addressed this topic.  Nor did the FAQ provide any guidance. 

    The Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs is very useful though.  While it does not provide the information you need; it does reference and link to many of the documents required to answer this question; specifically:

    a) DoD FMR Volume 10, Chapter 12, Section 120323,

    b) DoDI 1400.25 Volume 410 Training, Education and Professional Development, and

    c) A couple of U.S.C. references.

    None of these references expressly prohibit the payment of a cancellation fee either in general or via the purchase card.  Additionally, FAR 31.205-42 Termination Costs does recognize at FAR 31.205-42(c)(1)(iii) that initial costs associated with training are authorized in the event a contract is terminated for convenience.  Known as a “preparatory cost”. 

    So, if you are not able to negotiate with the vendor to not charge the cancellation fees it may be an authorized expense to pay with the purchase card.  Please confirm with your AOPC and fiscal attorney.

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