[Code of Federal Regulations]
[Title 10, Volume 4, Parts 500 to end]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR600.25]

[Page 94-95]
 
                            TITLE 10--ENERGY
 
               CHAPTER II--DEPARTMENT OF ENERGY--CONTINUED
 
PART 600--FINANCIAL ASSISTANCE RULES--Table of Contents
 
                           Subpart A--General
 
Sec. 600.25  Suspension and termination.

    (a) Suspension and termination for cause. DOE may suspend or 
terminate an award for cause on the basis of:
    (1) A noncompliance determination under Secs. 600.24, 600.122(n), 
600.162(a), or Sec. 600.243(a); or
    (2) An suspension or debarment of the awardee under Sec. 600.23.
    (b) Notification requirements. Except as provided in Sec. 600.24, 
600.162(a), or Sec. 600.243(a) before suspending or terminating a award 
for cause, DOE shall mail to the awardee (by certified mail, return 
receipt requested) a separate written notice in addition to that 
required by Secs. 600.24(a), 600.162(a), or Sec. 600.243(a) at least ten 
days prior to the effective date of the suspension or termination. Such 
notice shall include, as appropriate:
    (1) The factual and legal bases for the suspension or termination;
    (2) The effective date or dates of the DOE action;
    (3) If the action does not apply to the entire award, a description 
of the activities affected by the action;
    (4) Instructions concerning which costs shall be allowable during 
the period of suspension, or instructions concerning allowable 
termination costs, including in either case, instructions concerning any 
subgrants or contracts;
    (5) Instructions concerning required final reports and other 
closeout actions for terminated awards (see Secs. 600.170 through 
600.173 and Secs. 600.250 through 600.252);
    (6) A statement of the awardee's right to appeal a termination for 
cause pursuant to Sec. 600.22; and
    (7) The dated signature of a DOE Contracting Officer.
    (c) Suspension. (1) Unless DOE and the awardee agree otherwise, no 
period of suspension shall exceed 90 days.
    (2) DOE may cancel the suspension at any time, up to and including 
the date of expiration of the period of suspension, if the awardee takes 
satisfactory corrective action before the expiration date of the 
suspension or gives DOE satisfactory evidence that such corrective 
action will be taken.
    (3) If the suspension has not been cancelled by the expiration date 
of the period of suspension, the awardee shall resume the suspended 
activities or project unless, prior to the expiration date, DOE notifies 
the awardee in writing that the period of suspension shall be extended 
consistent with paragraph (c)(1) of this section or that the award shall 
be terminated.
    (4) As of the effective date of the suspension, DOE shall withhold 
further payments and shall allow new obligations incurred by the awardee 
during the period of suspension only if such costs were authorized in 
the notice of suspension or in a subsequent letter.
    (5) If the suspension is cancelled or expires and the award is not 
terminated, DOE shall reimburse the awardee for any authorized allowable 
costs incurred during the suspension and, if necessary, may amend the 
award to extend the period of performance.
    (d) Termination by mutual agreement. In addition to any situation 
where a termination for cause pursuant to Secs. 600.24, 600.160 through 
600.162 or Secs. 600.243 through 600.244 is appropriate, either DOE or 
the awardee may initiate a termination of an award (or portion thereof) 
as described in this

[[Page 95]]

paragraph. If the awardee initiates a termination, the awardee must 
notify DOE in writing and specify the awardee's reasons for requesting 
the termination, the proposed effective date of the termination, and, in 
the case of a partial termination, a description of the activities to be 
terminated, and an appropriate budget revision. DOE shall terminate an 
award or portion thereof under this paragraph only if both parties agree 
to the termination and the conditions under which it shall occur. If DOE 
determines that the remaining activities under a partially terminated 
award would not accomplish the purpose for which the award was 
originally awarded, DOE may terminate the entire award.
    (e) Effect of termination. The awardee shall incur no new 
obligations after the effective date of the termination of an award (or 
portion thereof), and shall cancel as many outstanding obligations as 
possible. DOE shall allow full credit to the awardee for the DOE share 
of noncancellable obligations properly incurred by the awardee prior to 
the effective date of the termination.
    (f) Subgrants. Awardees shall follow the policies and procedures in 
this section and in Secs. 600.24, 600.160 through 600.162 or 
Secs. 600.243 through 600.244 for suspending and terminating subgrants.