Good afternoon FUN with the FAR Friends!
Thank you for joining us for another great episode of FUN with the FAR! Episode 25 covered FAR Part 49 (Termination of Contracts).
As a follow-up to Wednesday’s session, here are a few facts to ponder as we prepare for our next session of Fun with the FAR:
DID YOU KNOW?
Note that FAR Part 49 does not apply to commercial item contracts. FAR 49.002(a)(2). Commercial item contractors and subcontractors should instead insist on including the termination provisions set forth at 52.212-4. See, e.g., FAR 52.212-4(l) (firm fixed price) and FAR 52.212-4 (Alt. 1), subsections (l) and (m) (T&M).
DID YOU KNOW?
Only a contracting officer has the authority to terminate a federal government contract. All termination notices must be in writing. FAR 49.102(a)
DID YOU KNOW?
A subcontractor has no contractual rights against the Government upon the termination of a prime contract. FAR 49.108-1.
DID YOU KNOW?
The Government is strictly prohibited from paying for anticipatory profits and consequential damages as part of a termination settlement agreement. FAR 49.202(a).
DID YOU KNOW?
In the event of a partial termination, the contractor may request an equitable adjustment in the price or prices of the continued portion of a fixed-price contract. FAR 49.208.