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A contract contains several CDRLs that will now not be required and a para in the SOW that will not need performed. The contractor is beginning to incur costs associated with these tasks. Should the PCO issue a Stop Work Order for those tasks and associated CDRLs? The FAR part I'm finding confusing is 42.1303(:lol:: "Generally, a stop-work order will be issued only if it is advisable to suspend work pending a decision by the Government and a supplemental agreement providing for the suspension is not feasible..." This implies you either issue a stop work OR a supplemental agreement and the stop work would only be issued if a decision by the Govt is pending. In this case the decision is firm: the Govt does not want the Ktr to perform the work associated with the SOW para or to deliver several CDRLs.

This leads me to believe a SA is advisable, which I believe is often referred to as a 'descope' modification. From DAU 'Ask a Professor':

"A de-scope is a reduction in the contract requirements- specifically the statement of work. You should do the following:

Send the contractor a letter advising it that the government intends to de-scope the contract, and specifically identify what will be de-scoped and how much. Request that the contractor give you a de-scope proposal, showing how much money will be saved by the de-scope. The proposal should be like any other- showing reductions in material, personnel, labor hours, etc. The proposal will be lower than the Government estimate in most cases. Then you evaluate the proposal and negotiate the reduction (including a reduction in profit/fee, since there is less work to do). Once an agreement is reached on the amount of the reduction, you issue a bi-lateral contract modification with the reduced pricing in section B, the reduced scope in section C, and any other changes that result from the reduction (some clauses may drop out if the revised contract value is below the threshold for using the clauses)."

I think we want to follow the process outlined above but we need the Ktr to immediately stop incurring costs (i.e. don't want to wait for proposal, etc) associated with the SOW para and CDRLs we no longer require. Please respond with any thoughts or recommendations....thank you.

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A contract contains several CDRLs that will now not be required and a para in the SOW that will not need performed. The contractor is beginning to incur costs associated with these tasks. Should the PCO issue a Stop Work Order for those tasks and associated CDRLs? The FAR part I'm finding confusing is 42.1303(B): "Generally, a stop-work order will be issued only if it is advisable to suspend work pending a decision by the Government and a supplemental agreement providing for the suspension is not feasible..." This implies you either issue a stop work OR a supplemental agreement and the stop work would only be issued if a decision by the Govt is pending. In this case the decision is firm: the Govt does not want the Ktr to perform the work associated with the SOW para or to deliver several CDRLs.

This leads me to believe a SA is advisable, which I believe is often referred to as a 'descope' modification. From DAU 'Ask a Professor':

"A de-scope is a reduction in the contract requirements- specifically the statement of work. You should do the following:

Send the contractor a letter advising it that the government intends to de-scope the contract, and specifically identify what will be de-scoped and how much. Request that the contractor give you a de-scope proposal, showing how much money will be saved by the de-scope. The proposal should be like any other- showing reductions in material, personnel, labor hours, etc. The proposal will be lower than the Government estimate in most cases. Then you evaluate the proposal and negotiate the reduction (including a reduction in profit/fee, since there is less work to do). Once an agreement is reached on the amount of the reduction, you issue a bi-lateral contract modification with the reduced pricing in section B, the reduced scope in section C, and any other changes that result from the reduction (some clauses may drop out if the revised contract value is below the threshold for using the clauses)."

I think we want to follow the process outlined above but we need the Ktr to immediately stop incurring costs (i.e. don't want to wait for proposal, etc) associated with the SOW para and CDRLs we no longer require. Please respond with any thoughts or recommendations....thank you.

Here is a portion of the text of 42.1303:

Quote

42.1303 -- Stop-Work Orders.

(a) Stop-work orders may be used, when appropriate, in any negotiated fixed-price or cost-reimbursement supply, research and development, or service contract if work stoppage may be required for reasons such as advancement in the state-of-the-art, production or engineering breakthroughs, or realignment of programs.

(B) Generally, a stop-work order will be issued only if it is advisable to suspend work pending a decision by the Government and a supplemental agreement providing for the suspension is not feasible. Issuance of a stop-work order shall be approved at a level higher than the contracting officer. Stop-work orders shall not be used in place of a termination notice after a decision to terminate has been made.

Unquote

Note the final sentence of paragraph (B).

I assume you have a FAR Part 49 Termination clause in your contract. It appears you have decided you no longer require the work covered by a portion of the SOW and by CDRLs. You should issue a partial termination of your contract covering the relevant portions of the SOW and the CDRLs.

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