[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR342.7003-2]



[Page 70-71]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 342_CONTRACT ADMINISTRATION--Table of Contents

 

                   Subpart 342.70_Contract Monitoring

 

Sec. 342.7003-2  Procedures.



    (a) The contracting officer is responsible for initiating immediate 

action to protect the Government's rights whenever the contractor fails 

to comply with either the delivery or reporting provisions of the 

contract. Compliance with the reporting provisions includes those 

reports to be submitted directly to the payment office. If such a report 

is not submitted on time, the contracting officer is to be notified 

promptly by the payment officer.

    (b) When the contract contains a termination for default clause, the 

contractor's failure to either submit any required report when due or 

perform or deliver services or work when required by the contract is to 

be considered a default in performance. In either circumstance, the 

contracting officer is to immediately issue a formal ten-day cure notice 

pursuant to the default clause. The cure notice is to follow the format 

prescribed in FAR 49.607 and is to include a statement to the effect 

that contract payments will be withheld if the default is not cured or 

is not determined to be excusable.

    (1) If the default is cured or is determined to be excusable, the 

contracting officer is not to initiate the withholding action.

    (2) If the default is not determined to be excusable or a response 

is not received within the allotted time, the contracting officer is to 

initiate withholding action on all contract payments and is to determine 

whether termination for default or other action would be in the best 

interest of the Government.

    (c) When the contract does not contain a termination for default 

clause, the contractor's failure to either submit any required report 

when due or perform or deliver services or work when required by the 

contract is to be considered a failure to perform. In either 

circumstance, the contracting officer is to immediately issue a written 

notice to the contractor specifying the failure and providing a period 

of ten days, or longer period as determined necessary by the contracting 

officer, in which the contractor is to cure the failure or establish an 

excusable delay. The contracting officer is to include a statement in 

the written notice to the effect that contract payments will be withheld 

if the failure is not cured or is not determined to be excusable.

    (1) If the failure is cured or is determined to be excusable, the 

contracting officer is not to initiate the withholding action.



[[Page 71]]



    (2) If the failure is not determined to be excusable or a response 

is not received within the allotted time, the contracting officer is to 

initiate withholding action on all contract payments and is to determine 

whether termination for convenience or other action would be in the best 

interest of the Government.

    (d) The contracting officer should consult FAR subpart 49.4 for 

further guidance before taking any of the actions described in this 

section.