Old-Dog Posted February 27, 2014 Report Share Posted February 27, 2014 If a subcontract is terminated and it has open changes, are the changes included in the termination or should they continue to be treated as stand alone changes? Link to comment Share on other sites More sharing options...
Navy_Contracting_4 Posted February 27, 2014 Report Share Posted February 27, 2014 That should be adddressed in the termination notice. See FAR 49.102(a)(3) -"The notice shall state--,,,[t]he extent of termination") and FAR 49.002( - "Contractors shall use this part, unless inappropriate, to settle subcontracts terminated as a result of modification of prime contracts." Link to comment Share on other sites More sharing options...
joel hoffman Posted February 28, 2014 Report Share Posted February 28, 2014 George, the open changes should be addressed in the Termination settlement if possible. It might be really fun trying to segregate costs between the change work and the original work to determine if and where the sub might be expected to bear a share of the costs on the base contract work if they would have incurred a loss had the subcontract been completed. It is harder to require the sub to share costs on undefinitized, uncompleted changes. EDIT: The foregoing advice assumes that the subcontract is firm fixed-price. Link to comment Share on other sites More sharing options...
Old-Dog Posted February 28, 2014 Author Report Share Posted February 28, 2014 Thanks, I thought I knew answer and you folks have confirmed it. Link to comment Share on other sites More sharing options...
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