Termination for Default
Running head: TERMINATION FOR DEFAULT
Termination for Default
DAU
Advance Contracting for Mission Support
CON 218
Primary Instructor: Urquhart
Secondary Instructor: Callaway
May 16, 2011
Abstract
When a default termination is being considered, the Government shall decide which type of termination action to take and issue the submission only after review by contracting, and technical personnel, and by counsel, to ensure the appropriateness of the proposed action. Additionally, if termination for default appears appropriate, the contracting officer should, if practicable, notify the contractor in writing of the possibility of the termination. This notice shall call the contractor’s attention to the contractual liabilities, if the contract is terminated for default, and request the contractor to “show cause” why the contract should not be terminated for default. The “show cause” notice may further state that failure of the contractor to present an explanation may be taken as an admission that no valid explanation exists. When appropriate, the notice may invite the contractor to discuss the matter at a conference. If a contract is terminated for default or a procedure authorized by FAR 49.402-4 is followed, the contracting officer shall prepare a memorandum for the contract file explaining the reasons for the action taken.
Higher Level Regulatory Documents • FAR 49.4 Termination for Default
• FAR 52.249-10 Termination for Default Clause
• DFARS 252.237-7007 Termination for Default
• PGI 208.7004-7 Termination for default
Termination for Default
Definition
FAR 49.401 defines termination for default (T4D) as generally the exercise of the Government 's contractual right to completely or partially terminate a contract because of the contractor 's actual or anticipated failure to perform.
The clause at FAR 52.249 10, Default (Fixed Price Construction), entitles the Government to recovery of
Termination for Default
DAU
Advance Contracting for Mission Support
CON 218
Primary Instructor: Urquhart
Secondary Instructor: Callaway
May 16, 2011
Abstract
When a default termination is being considered, the Government shall decide which type of termination action to take and issue the submission only after review by contracting, and technical personnel, and by counsel, to ensure the appropriateness of the proposed action. Additionally, if termination for default appears appropriate, the contracting officer should, if practicable, notify the contractor in writing of the possibility of the termination. This notice shall call the contractor’s attention to the contractual liabilities, if the contract is terminated for default, and request the contractor to “show cause” why the contract should not be terminated for default. The “show cause” notice may further state that failure of the contractor to present an explanation may be taken as an admission that no valid explanation exists. When appropriate, the notice may invite the contractor to discuss the matter at a conference. If a contract is terminated for default or a procedure authorized by FAR 49.402-4 is followed, the contracting officer shall prepare a memorandum for the contract file explaining the reasons for the action taken.
Higher Level Regulatory Documents • FAR 49.4 Termination for Default
• FAR 52.249-10 Termination for Default Clause
• DFARS 252.237-7007 Termination for Default
• PGI 208.7004-7 Termination for default
Termination for Default
Definition
FAR 49.401 defines termination for default (T4D) as generally the exercise of the Government 's contractual right to completely or partially terminate a contract because of the contractor 's actual or anticipated failure to perform.
The clause at FAR 52.249 10, Default (Fixed Price Construction), entitles the Government to recovery of