FAR 52.249-6 - Termination (Cost-Reimbursement)
Prescribed in 49.503(a)(1) | ||
Effective Date: | 1 May 2004 | |
Clause or Provision: | Clause | |
Provision or Clause Number: | 52.249-6 - Termination (Cost-Reimbursement) | |
Principle Type And/Or Purpose of Contract: | ||
Required: | ||
Applicable: | Cost Reimbursement Research and Development; Cost Reimbursement Supply; Cost Reimbursement Service; Leasing of Motor Vehicles; Communication Services; Dismantling, Demolition, or Removal of Improvements; Facilities; Indefinite Delivery; Transportation; Utility Services; | |
Optional: | Fixed Price Service; Fixed Price Construction; Cost Reimbursement Construction; Time and Materials/Labor Hour; Simplified Acquisition Procedures; | |
Subject: | Contract Termination"Contract Termination" is not in the list of possible values (Commercial Item, Independent Price Determination, Hotline Posters, Whistleblower Protection, Contingent Fees, Specifications/Standards, Leased Vehicles and Equipment, Payments to Influence Certain Federal Transactions, Contracts, Representations and Certifications, Executive Compensation, Category:Truth In Negotiations Act (TINA), Competition, Delivery or Performance Schedules, Employment/Labor/Wages, Certified Cost or Pricing Data and/or Data other than Certified, Defective Pricing, Data other than Certified, Indirect Rates and/or Incurred Cost Submissions, Bid & Proposal, Small Business, Hazardous Materials, Drug Free Workplace, "Green" Efforts (Printing, Waste Reduction, Pollution, Energy Efficiency), Recovered Material, Safety, Software, Utility Contracts, Contract Changes, Freight and/or Transportation, Termination/Cancellation, Mandatory Disclosure, Definitions, Category:Cost Accounting Standards (CAS), Audit and Records, Illegal or Improper Activity, Contractor Code of Business Ethics and Conduct, Definite-Quantity, Indefinite Quantity, or Requirements Contract, Gratuities, Conflicts of Interest, Anti-Kickback, Identity Verification, Approval of Contract, Security, Taxpayer Identification, Women-Owned Business, DUNS/SAM/CCR, Supplies, Equipment, Helium, Mandatory Sources of Supply or Services, Inverted Domestic Corporations, First Article Approval, Responsibility Matters, Market Research, Subcontract(s)/Subcontractor(s), Damages, Priority Rating, Quantity/Quantities, Material, Invoices and Payments, Disadvantaged, Small, Disabled, Veteran or Women Owned or HUBZone Business, Facilities Capital Cost of Money, Post Retirement Benefits and/or Pension, Ownership, Order of Precedence, Performance, Make or Buy, Contract Type, Letter Contract, Award(s), Economic Price Adjustment, Price Redetermination, Fee, Options, Envirnomental, Privacy, Buy American, Foreign, Patents, Licenses, Data Rights, and Royalties, Insurance, Bond, Taxes and/or Duties) for this property. | |
ProcurementType: | ||
Contract Threshold: | ||
Prescription Overview: | ||
Clause Overview: |
(a) The Government may terminate performance of work under this contract in whole or, from time to time, in part, if—
AlternatesAlternate I (Sept 1996)If the contract is for construction, substitute the following paragraph (h)(4) for paragraph (h)(4) of the basic clause: (4) A portion of the fee payable under the contract determined as follows: (i) If the contract is terminated for the convenience of the Government, the settlement shall include a percentage of the fee equal to the percentage of completion of work contemplated under the contract, but excluding subcontract effort included in subcontractors’ termination settlement proposals, less previous payments for fee. (ii) If the contract is terminated for default, the total fee payable shall be such proportionate part of the fee as the actual work in place is to the total work in place required by the contract. Alternate II (Sept 1996)If the contract is with an agency of the U.S. Government or with State, local, or foreign governments or their agencies, and if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate, delete paragraph (m)(2) from the basic clause. Alternate III (Sept 1996)If the contract is for construction with an agency of the U.S. Government or with State, local, or foreign governments or their agencies, the following paragraph (h)(4) shall be substituted for paragraph (h)(4) of the basic clause. Paragraph (m)(2) may be deleted from the basic clause if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate. (4) A portion of the fee payable under the contract determined as follows: (i) If the contract is terminated for the convenience of the Government, the settlement shall include a percentage of the fee equal to the percentage of completion of work contemplated under the contract, but excluding subcontract effort included in subcontractors’ termination settlement proposals, less previous payments for fee. (ii) If the contract is terminated for default, the total fee payable shall be such proportionate part of the fee as the actual work in place is to the total work in place required by the contract. Alternate IV (Sept 1996)If the contract is a time-and-material or labor-hour contract, substitute the following paragraphs (h) and (l) for paragraphs (h) and (l) of the basic clause: (h) If the Contractor and the Contracting Officer fail to agree in whole or in part on the amount to be paid because of the termination of work, the Contracting Officer shall determine, on the basis of information available, the amount, if any, due the Contractor and shall pay the amount determined as follows: (1) If the termination is for the convenience of the Government, include— (i) An amount for direct labor hours (as defined in the Schedule of the contract) determined by multiplying the number of direct labor hours expended before the effective date of termination by the hourly rate(s) in the Schedule, less any hourly rate payments already made to the Contractor; (ii) An amount (computed under the provisions for payment of materials) for material expenses incurred before the effective date of termination, not previously paid to the Contractor; (iii) An amount for labor and material expenses computed as if the expenses were incurred before the effective date of termination, if they are reasonably incurred after the effective date, with the approval of or as directed by the Contracting Officer; however, the Contractor shall discontinue these expenses as rapidly as practicable; (iv) If not included in subdivision (h)(1)(i), (ii), or (iii) of this clause, the cost of settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminated portion of the contract; and (v) The reasonable costs of settlement of the work terminated, including— (A) Accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement proposals and supporting data; (B) The termination and settlement of subcontracts (excluding the amounts of such settlements); and (C) Storage, transportation, and other costs incurred, reasonably necessary for the protection or disposition of the termination inventory. (2) If the termination is for default of the Contractor, include the amounts computed under paragraph (h)(1) of this clause but omit— (i) Any amount for preparation of the Contractor’s termination settlement proposal; and (ii) The portion of the hourly rate allocable to profit for any direct labor hours expended in furnishing materials and services not delivered to and accepted by the Government.
(l) If the termination is partial, the Contractor may file with the Contracting Officer a proposal for an equitable adjustment of price(s) for the continued portion of the contract. The Contracting Officer shall make any equitable adjustment agreed upon. Any proposal by the Contractor for an equitable adjustment under this clause shall be requested within 90 days from the effective date of termination, unless extended in writing by the Contracting Officer. Alternate V (Sept 1996)If the contract is a time-and-material or labor-hour contract with an agency of the U.S. Government or with State, local or foreign governments or their agencies, substitute the following paragraphs (h) and (l) for paragraphs (h) and (l) of the basic clause. Paragraph (m)(2) may be deleted from the basic clause if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate. (h) If the Contractor and the Contracting Officer fail to agree in whole or in part on the amount to be paid because of the termination of work, the Contracting Officer shall determine, on the basis of information available, the amount, if any, due the Contractor and shall pay the amount determined as follows: (1) If the termination is for the convenience of the Government, include— (i) An amount for direct labor hours (as defined in the Schedule of the contract) determined by multiplying the number of direct labor hours expended before the effective date of termination by the hourly rate(s) in the Schedule, less any hourly rate payments already made to the contractor; (ii) An amount (computed under the provisions for payment of materials) for material expenses incurred before the effective date of termination, not previously paid to the Contractor; (iii) An amount for labor and material expenses computed as if the expenses were incurred before the effective date of termination if they are reasonably incurred after the effective date, with the approval of or as directed by the Contracting Officer; however, the Contractor shall discontinue these expenses as rapidly as practicable; (iv) If not included in subdivision (h)(1)(i), (ii), or (iii) of this clause, the cost of settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminated portion of the contract; and (v) The reasonable costs of settlement of the work terminated, including— (A) Accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement proposals and supporting data; (B) The termination and settlement of subcontracts (excluding the amounts of such settlements); and (C) Storage, transportation, and other costs incurred, reasonably necessary for the protection or disposition of the termination inventory. (2) If the termination is for default of the Contractor, include the amounts computed under paragraph (h)(1) of this clause but omit— (i) Any amount for preparation of the Contractor’s termination settlement proposal; and (ii) The portion of the hourly rate allocable to profit for any direct labor hours expended in furnishing materials and services not delivered to and accepted by the Government.
(l) If the termination is partial, the Contractor may file with the Contracting Officer a proposal for an equitable adjustment of the price(s) for the continued portion of the contract. The Contracting Officer shall make any equitable adjustment agreed upon. Any proposal by the Contractor for an equitable adjustment under this clause shall be requested within 90 days from the effective date of termination, unless extended in writing by the Contracting Officer. | |
Important Notes/Requirements: | ||
Subcontract Threshold: | ||
Incorporated by Reference: | Yes | |
Uniform Contract Format: | I | |
Editor: | Marshall |
Personal notes.