Mandatory Procedure

Table of Contents

MP5349 Terminationof Contracts

[2019Edition]

SUBPARTMP5349.5 — CONTRACT TERMINATION CLAUSES

MP5349.501-70 Special Termination Costs

(a) Contracting officers must refer to Volume 2A, Chapter 1, Section010214, paragraph C.2.a of DoD7000.14-R, DoD Financial Management Regulation, for Congressionalnotification and additional approval requirements for SpecialTermination Cost Clauses (STCC). Because STCCs require specialnotification to Congress and entail a long approval process overwhich the Air Force has little control, the contracting officershould allow SAF/AQC sufficient time to process requests to use DFARS252.249-7000, Special Termination Costs (i.e., not less than 90 daysprior to contract award). The request must include the following:

(i) A detailed breakdown of applicable cost categories in the clauseat DFARS 252.249-7000, (a)(1)through (5), which includes the reasons for the anticipatedincurrence of the costs in each category;

(ii) Information on the financial and program need for the clauseincluding an assessment of the contractor's financial position andthe impact of a failure to receive authority to use the clause; and

(iii) Clear evidence that only costs that arise directly from atermination would be compensated under the clause. Costs that wouldbe incurred by the Government, regardless of whether a terminationoccurs, must not be covered by a STCC.

SUBPART MP5349.70 — SPECIAL TERMINATION REQUIREMENTS

MP5349.7001 Congressional Notification onSignificant Contract Terminations

(3)(v) Contract price of the items terminated means thecontract price of the supplies or services not yet accepted that arebeing terminated. The contracting officer must not adjust thisamount downward for progress or advance payments, accepted voucheredcosts, or less than full funding and should use estimates whenun-priced contract actions are being terminated, or when otherwisenecessary.

MP5349.7003 Notification of AnticipatedTerminations or Reductions

(b)(2)(i) Address the notification to:

Administrator

Office of National Response

U. S. Department of Labor

Employmentand Training Administration

200Constitution Avenue NW

RoomN5422

WashingtonDC 20210

The notice mustaddress the following key elements:

(1) Contract number, date, and type of contract

(2) Name of the Company

(3) Nature of contract or end item

(4) The reason for the termination

(5) Contract price of the items terminated

(6) Total number of contractor employees involved, including theGovernment s estimate of the number who may be discharged

(7) Statement of anticipated impact on the company and the community

(8) The area labor category, whether the contractor is a large orsmall business, and any known impact on hardcore disadvantagedemployment programs

(9) Total number of subcontractors involved and the impact in thisarea, and

(10) An unclassified draft of a suggested press release