[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR49]

[Page 908-909]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 49_TERMINATION OF CONTRACTS--Table of Contents
 
                     Subpart 49.1_General Principles
 
Sec.  49.104  Duties of prime contractor after receipt of notice of termination.

    After receipt of the notice of termination, the contractor shall 
comply with the notice and the termination clause of the contract, 
except as otherwise directed by the TCO. The notice and clause 
applicable to convenience terminations generally require that the 
contractor--
    (a) Stop work immediately on the terminated portion of the contract 
and stop placing subcontracts thereunder;

[[Page 909]]

    (b) Terminate all subcontracts related to the terminated portion of 
the prime contract;
    (c) Immediately advise the TCO of any special circumstances 
precluding the stoppage of work;
    (d) Perform the continued portion of the contract and submit 
promptly any request for an equitable adjustment of price for the 
continued portion, supported by evidence of any increase in the cost, if 
the termination is partial;
    (e) Take necessary or directed action to protect and preserve 
property in the contractor's possession in which the Government has or 
may acquire an interest and, as directed by the TCO, deliver the 
property to the Government;
    (f) Promptly notify the TCO in writing of any legal proceedings 
growing out of any subcontract or other commitment related to the 
terminated portion of the contract;
    (g) Settle outstanding liabilities and proposals arising out of 
termination of subcontracts, obtaining any approvals or ratifications 
required by the TCO;
    (h) Promptly submit the contractor's own settlement proposal, 
supported by appropriate schedules; and
    (i) Dispose of termination inventory, as directed or authorized by 
the TCO.