REMOVING/DELETING WORK

[JLS1102]

I have a CPIF contract that was awarded for a period of performance of 5 years (2008-2013). There are no options and funding is added as it becomes available. However, funds are being cut by about $40M so they want to decrease the ceiling of the contract by approximately $40M to $160M from $200M. Instead of doing a Business Clearance for the $40M decrease can we just not add any additional funds to the contract and let the contract expire or is a Business Clearance required to justify the $40M decrease.

The Contract Specialist who had this contract prior to me requested a proposal from the contractor however it is for the $160M vice the $40M decrease which is making it hard to put together a Business Clearance. This has become a "hot" issue as it's been in the works for a couple years. Looking for an easy way and right now the Business Clearance doesn't appear to be the easy way.l

Thank you

[ji20874]

Does your contract include the clause at FAR 52.232-22, Limitation of Funds? If so, see paragraphs ( c ) and ( e ). If you cannot provide the funds required for contract performance, then you will terminate the contract.

Business clearance is an agency-specific practice, not a FAR practice. But as I understand it, you only need to do a business clearance if you are re-negotiating the contract.

Do you want the contract to "expire" when the money runs out? You should terminate it in accordance with para. ( e ) of the clause at FAR 52.232-22.

You you want to re-structure-re-negotiate the contract? Do a business clearance explaining your approach and outcomes.

[Guest Vern Edwards]

Instead of doing a Business Clearance for the $40M decrease can we just not add any additional funds to the contract and let the contract expire or is a Business Clearance required to justify the $40M decrease.Thank you

How would any of us know whether or not you need a business clearance? Ask your supervisor.