# AFARS PART 5149

- Subpart 5149.1 – General Principles

- 5149.101 -- Authorities and responsibilities.
- 5149.107 -- Audit of prime contract settlement proposals and subcontract settlements.

- Subpart 5149.4 -- Termination for Default

- 5149.402 -- Termination of fixed-price contracts for default.

- 5149.402-3 -- Procedure for default.

- Subpart 5149.70 -- Special Termination Requirements

- 5149.7001 -- Congressional notification on significant contract terminations.
- 5149.7002 -- Deleted. [AFARS Revision #21, dated May 22, 2007]

AFARS -- Part 5149
Termination of Contracts

Subpart 5149.1 – General Principles

5149.101 -- Authorities and responsibilities.

(b)(S-90)

(1) Contracting officers should exercise the authority to terminate a contract for convenience of the Government only after proper authorization and instructions from the activity which requested that the contract be established.

(2) Contracting officers should not terminate any contract for convenience if the contractor is in inexcusable default and the Government has a legal right to terminate for default, even if the Government’s requirements for performance no longer exist. This prohibition does not preclude a no-cost termination settlement agreement as provided for at FAR 49.402-4(c).

(3) Terminate contracts resulting from military interdepartmental purchase requests (MIPR) in accordance with DFARS 208.7004-6 and 208.7004-7.

[AFARS Revision #21, dated May 22, 2007]

5149.107 -- Audit of prime contract settlement proposals and subcontract settlements.

(a) Within five calendar days after receipt from the contractor, send electronically all settlement proposals to the responsible audit office, including inventory and accounting information and related documents.

Subpart 5149.4 -- Termination for Default

5149.402 -- Termination of fixed-price contracts for default.

5149.402-3 -- Procedure for default.

(e) (4) Contracting officers should not terminate for default any contract with a small business firm to whom a Certificate of Competency was issued, or to whom loans were made with SBA’s participation, without prior written approval of the Head of the Contracting Activity (HCA).

(f) (6) When unliquidated progress payments, advance payments, guaranteed loans, or anticipated excess repurchase costs are involved, the contracting officer must:

(A) Obtain from the Administrative Contracting Officer (ACO) a statement of the value of the inventory that may be available for offset against the outstanding financing.

(B) Identify and state the approximate amount of the excess acquisition costs applicable.

[AFARS Revision #21, dated May 22, 2007]

Subpart 5149.70 -- Special Termination Requirements

5149.7001 -- Congressional notification on significant contract terminations.

See DFARS PGI 249.7001 (2). Send the clearance request through the HCA directly to the addressee at 5101.290(b)(10) or by facsimile at Defense Switch Network (DSN) 227-6988 or (703) 697-6988. [AFARS Revision #21, dated May 22, 2007]

5149.7002 -- Deleted. [AFARS Revision #21, dated May 22, 2007]