[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR49]



[Page 924]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 49_TERMINATION OF CONTRACTS--Table of Contents

 

                     Subpart 49.1_General Principles

 

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;

    (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.