MP5349 — Termination of Contracts
Mandatory Procedure
MP5349 Termination of Contracts
SUBPART MP5349.5 — CONTRACT TERMINATION CLAUSES
MP5349.501-70 Special Termination Costs
MP5349.7001 Congressional Notification on Significant Contract Terminations
MP5349.7003 Notification of Anticipated Terminations or Reductions
(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
(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.
(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
2019 Edition