Question

Contract termination policy and procedures are identified in federal government contracts. Who has the authority and responsibility for terminating contracts? When may the government terminate a contract? What are the procedures for terminating a contract for convenience?

Answer 1

The Contracting Officer Authority has the authority and responsibility to terminate contracts and make the necessary related determinations and findings. Unfortunately, the government may terminate or end a contract at any time through the use of termination clauses. The procedures forterminating a contract of convenience the CO must discuss the issues and performance concerns with the contractor, by providing a written notice that includes the effective date of termination, the extent of termination, and any special instructions and direction in accordance with FAR termination requirements. Also under a termination of convenience, contractors also may find that only portions of the contract have been terminated. However, the contractor must still adherewith the notice and requirements of the FAR termination clause.