[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

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

[CITE: 13CFR124.518]



[Page 405]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 124_8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS--Table of Contents

 

                   Subpart A_8(a) Business Development

 

Sec. 124.518  How can an 8(a) contract be terminated before performance 

is completed?



    (a) Termination for default. A decision to terminate a specific 8(a) 

contract for default can be made by the procuring activity contracting 

officer after consulting with SBA. The contracting officer must advise 

SBA of any intent to terminate an 8(a) contract for default in writing 

before doing so. SBA may provide to the Participant any program benefits 

reasonably available in order to assist it in avoiding termination for 

default. SBA will advise the contracting officer of this effort. Any 

procuring activity contracting officer who believes grounds for 

termination continue to exist may terminate the 8(a) contract for 

default, in accordance with the Federal Acquisition Regulations (48 CFR 

chapter 1). SBA will have no liability for termination costs or 

reprocurement costs.

    (b) Termination for convenience. After consulting with SBA, the 

procuring activity contracting officer may terminate an 8(a) contract 

for convenience when it is in the best interests of the Government to do 

so. A termination for convenience is appropriate if any disadvantaged 

owner of the Participant performing the contract relinquishes ownership 

or control of such concern, or enters into any agreement to relinquish 

such ownership or control, unless a waiver is granted pursuant to Sec. 

124.515.

    (c) Substitution of one 8(a) contractor for another. Where a 

procuring activity contracting officer demonstrates to SBA that an 8(a) 

contract will otherwise be terminated for default, SBA may authorize 

another Participant to complete performance and, in conjunction with the 

procuring activity, permit novation of the contract without invoking the 

termination for convenience or waiver provisions of Sec. 124.515.