PART 9-8 TERMINATION OF CONTRACTS

$9-8.000 Scope and applicability of part.

(a) This part implements and supplements the policies, procedures, and other requirements of FPR Part 1-8.

(b) The provisions of FPR Part 1-8 and this part may be utilized when authorized by Heads of Procuring Activities in accordance with FPR 1-8.000(d) in the situations enumerated in FPR 1-8.000(d) (1) and (2).

(c) The policies and requirements of FPR 1-8 and this part shall be applied to the termination and settlement of subcontracts by contractors having cost-reimbursement type contracts.

Subpart 9-8.2⭑General Principles Applicable to the
Termination for Convenience and Settlement

of Fixed-Price Type and Cost-Reimbursement
Type Contracts

$9-8.201 General.

(a) Subject to the requirements of paragraph (b) of this section, the Contracting Officer may terminate a contract for the convenience of the Government and enter into a settlement agreement in accordance with FPR 1-8.2. Claims arising out of a partial termination of a contract should be processed and settled in the same manner as claims arising out of a complete termination.

(b) The Head of the Agency or his designee shall be notified prior to taking any action to terminate (1) contracts for the operation of Government-owned facilities, (2) any prime contract or subcontract in excess of $10 million, and (3) any contract the termination of which is likely to provoke unusual interest.

$9-8.206 Fraud or other criminal conduct.

Any evidence of fraud or other criminal conduct in connection with the settlement of a terminated contract shall be reported in accordance with §9-1.606-50.

§9-8.208-4 Authorization for subcontract settlements without approval or ratification.

The power to authorize a contractor to conclude settlements of his terminated subcontracts without approval or ratification of the Contracting Officer when the amount of settlement is more than $10,000, but not more than $25,000, shall be exercised by Contracting Officers, only with the approval of the Heads of Procuring Activities.

$9-8.208-8. Assignment of rights under subcontracts.

The Contracting Officer's determination under FPR 1-8.208-8(b) that it is in the best interest of the Government to settle and pay directly a subcontractor's termination claim is subject to the approval of the Head of the Procuring Activity.

$9-8.211 Review and approval of proposed settlements.

§9-8.211-1 Settlement review boards.

FPR 1-8.211-2(b) will not apply to proposed settlements under DOE contracts. The review of all proposed settlements under circumstances specified in FPR 1-8.211-2(a) will be by field office settlement review boards established by Heads of Procuring Activities.

§9-8.211-2 Required review and approval.

(a) Proposed settlement agreements or determinations in excess of contractual authority of Heads of Procuring Activities will be transmitted to the Senior Procurement Official, Headquarters, for review and approval.

(b) Contracting Officers shall not conclude proposed settlements or determinations until the approvals required by FPR 1-8.211 and this section have been obtained.

§9-8.212 Payment.

§9-8.212-1 Partial payments upon termination.

Protection of the Government's interest in partial payments, by means other than those specified in FPR 1-8.212-1(d), shall be subject to approval of a Head of a Procuring Activity.

Subpart 9-8.3 Additional Principles Applicable to the
Settlement of Fixed-Price Type Contracts

Terminated for Convenience

§9-8.307 Settlement proposals.

§9-8.307-1 Submission of settlement proposals.

Contracting Officers shall encourage contractors to use the suggested formats set forth in FPR 1-8.802, 1-8.803, and 1-8.804 in the submission of settlement proposals, inventory schedules, accounting information, and applications for partial payments. The form entitled "Schedule of Accounting Information” (FPR 1-8.804–1) need be filed only once with respect to any termination. When the standard forms are not appropriate for a particular contract, Heads of Procuring Activities may authorize modifications thereof. However, the certificate shall be substantially as set forth in the form.

§9-8.307-2 Basis for settlement proposals.

Termination claims shall not be submitted on any basis other than the inventory or total cost basis without the prior approval of the Heads of Procuring Activities.

Subpart 9-8.4 Additional Principles Applicable to the
Settlement of Cost-Reimbursement Type
Contracts Terminated for Convenience

$9-8.404 Procedure after invoices or vouchers are discontinued.

§9-8.404-1 Submission of settlement proposal.

Contracting Officers should encourage contractors to submit settlement proposals in the form set forth in FPR 1-8.802-4. When necessary, Heads of Procuring Activities may authorize modification of this form. However, the certificate shall be substantially as set forth in the form.