GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (GSAM)

## Part 549—Termination of Contracts

### Subpart 549.1—General Principles

#### 549.111 Review of proposed settlements.

The HCA may establish procedures for the review and approval of settlement agreements at a level above the contracting officer.

### Subpart 549.4—Termination for Default

#### 549.402-6 Repurchase against contractor’s account.

(a) Place a brief explanation for the repurchase in the contract file.

(b) If practical, use the original contract terms, conditions, and specification for the repurchase. Otherwise, obtain the advice of assigned legal counsel before issuing a solicitation for similar supplies or services.

(c) If the reprocurement is delayed, you must protect the Government’s rights to recover reprocurement costs by documenting the file to explain the circumstances of the delay.

#### 549.402-7 Other damages.

(a) Even if the repurchase price does not exceed the price of the supplies or services terminated, consider administrative costs incurred for the repurchase. You may include all reprocurement costs in a single demand letter (see FAR 49.402-6(c)). Include detailed documentation in the contract file to support the Government’s position that the additional administrative costs were a direct result of the default. Provide a summary of the additional administrative costs in the demand letter.

(b) Administrative costs include any of these:

(1) Salaries and fringe benefits paid to Government employees who perform work as a result of the default.

(2) Preaward survey expense incurred in qualifying reprocurement contractors.

(3) Printing and distribution costs of the reprocurement solicitation and repurchase contract.

(4) Travel, per diem.

(c) For administrative labor costs, record each of the following:

(1) Name, position, and organization of each employee performing work activities as a consequence of the default.

(2) Date(s) of work and time(s) spent by each employee on the repurchase.

(3) Description of specific tasks performed (for example, solicitation preparation, clerical).

(4) Hourly rate of pay (straight time or overtime).

(5) Applicable fringe benefits.

(6) Explanation of how the time spent by the employees during the reprocurement would have been used on other projects but for the default.

(d) For other incurred administrative costs, include travel vouchers, invoices, printing requisitions, and other appropriate evidence of expenditures.

### Subpart 549.5—Contract Termination Clauses #### 549.502 Termination for convenience of the Government. ##### Acquisitions Funded Through the Information Technology (IT) Fund (a) You may use the clause at 552.249-70, Termination for Convenience of the Government (Fixed-Price) (Short Form), when appropriate, in solicitations and contracts for the acquisition and maintenance of telephone systems funded through the Information Technology (IT) Fund. Use this clause with FAR 52.249-1 or FAR 52.249-3 and 52.249-4. (b) If you use the clause at 552.249-70, you must also insert 552.249-71, Submission of Termination Liability Schedule, in the solicitation and contract.