Hello and thank you for joining us for Episode 24 of Fun with the FAR Season 11!
Our next episode will cover FAR Part 49 (Terminations of Contracts)! As we prepare for our 25th episode of Season 11, here are a few Episode 25 FAR Facts for us to think about:
- 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).
- Only a contracting officer has the authority to terminate a federal government contract. All termination notices must be in writing. FAR 49.102(a).
- A subcontractor has no contractual rights against the Government upon the termination of a prime contract. FAR 49.108-1.
- The Government is strictly prohibited from paying for anticipatory profits and consequential damages as part of a termination settlement agreement. FAR 49.202(a).
- 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.
- The “Excusable Delays” clause set forth at FAR 52.249-14 is not required to be included in a firm-fixed-price type contract. FAR 49.505(b).