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Expiration of a Contract


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Q-1) Does failure to extend a Contract past award/modification date constitute the contract being expired and the terms and conditions become no longer enforceable?

FACTS BEARING ON THE ISSUE:

a. The contractor has not completed the contract; i.e. PL items & closeout items;

b. has not submitted a ROC;

c. has not submitted a request for Final Payment (funds still remaining on the contract);

d. has not submitted/provided a final 3065;

e. received a government issued a “Beneficial Occupancy” Letter one year ago;

f. has not received or requested “Substantial Completion;”

g. has not submitted all DOL Certified payroll requirements;

h. currently has a claim against the government that is being processed through the FAR process

i. Contract POP date is 30 JUN 12

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The fact that the period of performance end date has passed generally does not mean the contract is dead (no longer enforceable). The period of performance is just one of the contract's terms and conditions. If the contractor fails to meet that requirement, the Government generally can ( a ) terminate for the contractor's default; or ( z ) forbear (withhold termination) and let the contractor continue to perform its other obligations; or ( b )-( y ) other steps in between.

But the Government may have already forfeited some of its procedural rights and might need to re-establish them -- the Government issued a beneficial occupancy letter a year ago and didn't (?) issue a cure notice or show cause notice somewhere around June 30. If the contractor continues to perform, the Government can still accept the work and pay for it. If the contractor has abandoned the work, well, the Government probably wishes it hadn't issed the beneficial occupancy letter.

If you want better understanding by others,i recommend using fewer acronyms.

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Guest Vern Edwards

Your question is unclear.

Contracts don't have expiration dates. Contracts have (1) a delivery date, (2) a completion date, or (3) a period of performance. (In addition, an IDIQ contract has an ordering period.) Contracts do not "expire" until all obligations of both parties have been fulfilled.

You appear to be asking about a construction contract. It appears that the contractor did not complete the construction work by the completion date, did not perform certain administrative tasks, and has not requested final payment. However, the contractor has submitted a claim to the government that is pending. You want to know if the contract is still "enforceable".

Enforceable by which party and to what extent? If one of the parties has committed a material breach of the contract, then the other party almost certainly will have been relieved of at least some of its obligations to some extent, which means that the party that has breached the contract cannot enforce all of its terms. However, a party may still have some rights, even if it has materially breached the contract.

Can you ask a more specific question?

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1 - RESTATED QUESTION:

Does a FFP Construction contract expire when the contract POP/completion date expires and the Contractor has failed to complete the contract IAW terms and conditions of the contract and P&S.

2 – CLAIM BY CONTRACTOR:

The Claim is not the primary reason why the contractor has failed to complete the contract, I thought this informational fact of this equation might have impact on question response and evaluation.

3 – ENFORCEABLE:

Yes, is the contract still enforceable by the government as the next step is to seek Surety resolution IAW FAR 49.402-3 h

4 - With the basis that the contract is still enforceable and not considered EXPIRED, other actions and options now surface such as T4D of the Contractor and IAW FAR 49; seeking Surety requirements IAW P&P Bond requirements.

5 - Contractor is still in existence and subs are completing Warranty issues.

6 - Contractor has not satisfactory responded to CURE NOTICES and refutes all government positions

7 – T4D:

This office has had several different internal responses and opinions as to the contract status: ie - being expired and no longer enforceable due to the POP & Contract delivery date being past (30 JUN 2012) and that due to contract not being extended, the contract is expired. (Legal is still reviewing)

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Guest Vern Edwards

1. Answer to restated question: No. I already told you that and explained my answer.

2. The fact that there is a claim has no bearing on the question of whether the contract has "expired".

Is there another question in your post?

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