AFFARS LIBRARY | ||||
PART 5349 [Revised June 15, 2006] |
SUBPART 5349.1--GENERAL PRINCIPLES
5349.101 Authority to Terminate.
Except for AFMC and AFSPC, authority to terminate contracts for default or cause requires approval by the SCO or command appointed terminations contracting officer (TCO). When requesting approval, the contracting officer will provide all relevant documents to include a chronology of key events, cure/show cause notices and responses thereto.
SUBPART 5349.4 — TERMINATION FOR DEFAULT
5349.402 Termination of fixed-price contracts for default. (No Text)
5349.402-3 Procedure for default.
(d) For all ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the cure notice, immediately inform SAF/AQCK and forward a copy of the cure notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.
(e)(1) For all ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the show cause notice, immediately inform SAF/AQCK and forward a copy of the show cause notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.
(f) Prior to making a final decision concerning termination for default, the contracting officer shall forward the termination notice and the complete contract file to AFMCLO/JAB and follow the procedures in 5333.291(b).
(h) For termination notices related to ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and distribute a copy of the termination notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.
5349.402-6 Repurchase against contractor’s account.
The contracting officer shall provide copies of assessments of excess reprocurement costs to DFAS/BKRD/CC and AFMCLO/JAB.
5349.403 Termination of Cost-Reimbursement Contracts for Default
(a) For all ACAT I, II, and III Programs, the contracting officer shall, upon issuance of the termination notice, immediately inform SAF/AQCK and forward a copy of the termination notice to SAF/AQCK. In addition to ACAT program notices, contracting officers shall notify SAF/AQCK of any other notices that could result in high-level Air Force interest.
SUBPART 5349.5 — CONTRACT TERMINATION CLAUSES
5349.501-70 Special termination costs.
(a) Contracting officers shall refer to Volume 2A, Chapter 1, Section 010213, paragraph C.2 of DoD 7000.14-R, DoD Financial Management Regulation, for Congressional notification and additional approval requirements for Special Termination Cost Clauses (STCCs). Because STCCs require special notification to Congress and entail a long approval process over which the Air Force has little control, the contracting officer should allow SAF/AQCK sufficient time to process requests to use DFARS 252.249-7000, Special Termination Costs (i.e. not less than 90 days prior to contract award). The request shall include the following:
(i) A detailed breakdown of applicable cost categories in the clause at DFARS 252.249-7000 (a)(1) through (5), which includes the reasons for the anticipated incurrence of the costs in each category;
(ii) Information on the financial and program need for the clause including an assessment of the contractor's financial position and the impact of a failure to receive authority to use the clause; and
(iii) Clear evidence that only costs that arise directly from a termination would be compensated under the clause. Costs that would be incurred by the Government, regardless of whether a termination occurs, shall not be covered by a STCC.
(c) The contracting officer shall obtain SAF/FM approval prior to authorizing any increase in the Government's maximum liability under the clause.
SUBPART 5349.70 — SPECIAL TERMINATION REQUIREMENTS
5349.7001 Congressional notification on significant contract terminations.
(c) The contracting officer shall submit the request for clearance to SAF/AQCK at least five workdays before the proposed termination date. SAF/AQCK will forward the clearance request to SAF/LLP. The contracting officer shall not release the termination notice until SAF/LLP contacts the contracting officer, indicating the date and time that Congress will be notified and the contractor should receive the termination notice.
(d)(5) “Contract price of the items terminated” means the contract price of the supplies or services not yet accepted that are being terminated. The contracting officer shall not adjust this amount downward for progress or advance payments, accepted vouchered costs, or less than full funding and should use estimates when unpriced contract actions are being terminated, or when otherwise necessary.