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    Can a contract be reinstated once it has been terminated? Also can a contract be reinstated if the period of performance has passed?


    Answer

    Question 1:  Can a contract be reinstated once it has been terminated?

     

    Response:    Yes, pursuant to FAR 49.102(d). 

     

    (d) Reinstatement of terminated contracts. Upon written consent of the contractor, the contracting office may reinstate the terminated portion of a contract in whole or in part by amending the notice of termination if it has been determined in writing that –

     

          (1) Circumstances clearly indicate a requirement for the terminated items; and

          (2) Reinstatement is advantageous to the Government.

     

    Pursuant to this FAR reference, the contracting officer should document the rationale for reinstating the contract, to establish a compelling case how the reinstatement is advantageous to the Government.  I recommend reviewing your agency's FAR Supplement, seeking local legal counsel before reinstating the contract.

     

    Question 2:  Can a contract be reinstated if the period of performance has passed?

     

    Response: Generally, no.  Once a contract has expired, there is no longer a contractual relationship.  Therefore, the authorities within the contract (such as the Changes Clause or Option to Extend the Term of the Contract Clause) typically used to extend the period of performance are no longer in effect.  Reinstating the contract would be beyond the scope or the original contract, and would essentially be a sole source award of a new contract.  Before pursuing this course of action, you must write a justification and obtain appropriate approvals (including legal counsel) in accordance with FAR Part 6. 

     

    One course of action to consider in this situation: if you're facing immediate needs, quickly execute a sole-source contract pursuant to the authority of FAR 6.2 or 6.3 for the next 6 months.  In parallel, execute a competitive acquisition and award a contract for requirements beyond 6 months. 

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