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Termination for Default


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#1 Sue1234

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Posted 25 October 2011 - 08:22 AM

Has anyone ever done a termination for default for a small business? This is a cost reimbursable contract. The contractor notified us that their doors were closing so we issued a cure notice and the contractor responded that they have ceased operations and do not want to cure the contract. They will not be doing any more work on the contract because the employees have been terminated. Is there anything different that has to be done because this is a Small Business set aside? What would be the next thing that needs to be done, a termination for default letter?

#2 Vern Edwards

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Posted 25 October 2011 - 09:24 AM

There is nothing different, unless you have an 8(a) contract.

#3 napolik

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Posted 25 October 2011 - 09:36 AM

Has anyone ever done a termination for default for a small business? This is a cost reimbursable contract. The contractor notified us that their doors were closing so we issued a cure notice and the contractor responded that they have ceased operations and do not want to cure the contract. They will not be doing any more work on the contract because the employees have been terminated. Is there anything different that has to be done because this is a Small Business set aside? What would be the next thing that needs to be done, a termination for default letter?

You should have followed the procedures at FAR 49.402-3(e)(4) with regard to providing a copy of the cure notice to your small business specialist and the Small Business Administration Regional Office nearest the contractor.

If the contract was awarded pursuant to FAR 19.8, contact SBA before terminating.

I suggest you take a look at FAR 49.402-3 and at your agency's FAR supplement to see if anything else applies to your circumstance.




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