subpart
249.70--special termination requirements
(Revised May 31, 2007)
249.7000 Terminated contracts
with Canadian Commercial Corporation.
249.7001 Congressional
notification on significant contract terminations.
249.7002 Reserved.
249.7003 Notification of
anticipated contract terminations or reductions.
249.7000 Terminated contracts
with Canadian Commercial Corporation.
(a) Terminate contracts with the Canadian Commercial Corporation in accordance with—
(1) The Letter of Agreement (LOA) between the Department of Defence Production (Canada) and the U.S. DoD, “Canadian Agreement” (for a copy of the LOA or for questions on its currency, contact the Office of the Director of Defense Procurement and Acquisition Policy (Contract Policy and International Contracting), (703) 697-9351, DSN 227-9351);
(2) Policies in the Canadian Agreement and Part 249; and
(3) The
Canadian Supply Manual, Chapter 11, Section 11.146, available at http://www.pwgsc.gc.ca/acquisitions/text/sm/sm-e.html.
(b) Contracting officers shall ensure that the Canadian Commercial Corporation submits termination settlement proposals in the format prescribed in FAR 49.602 and that they contain the amount of settlements with subcontractors. The termination contracting officer (TCO) shall prepare an appropriate settlement agreement. (See FAR 49.603.) The letter transmitting a settlement proposal must certify—
(1) That disposition of inventory has been completed; and
(2) That the Contract Claims Resolution Board of the Public Works and Government Services Canada has approved settlements with Canadian subcontractors when the Procedures Manual on Termination of Contracts requires such approval.
(c)(1) The Canadian Commercial Corporation will—
(i) Settle all Canadian subcontractor termination claims under the Canadian Agreement; and
(ii) Submit schedules listing serviceable and usable contractor inventory for screening to the TCO (see FAR 45.6).
(2) After screening, the TCO must provide guidance to the Canadian Commercial Corporation for disposition of the contractor inventory.
(3) Settlement
of Canadian subcontractor claims are not subject to the approval and ratification
of the TCO. However, when the proposed
negotiated settlement exceeds the total contract price of the prime contract,
the TCO shall obtain from the
(i) Ratification of the proposed settlement; and
(ii) A contract modification increasing the contract price and obligating the additional funds.
(d) The Canadian
Commercial Corporation should send all termination settlement proposals
submitted by
(e) The Canadian Commercial Corporation will
continue administering contracts that the
(f) The Canadian Commercial
Corporation will settle all Canadian subcontracts in accordance with the
policies, practices, and procedures of the Canadian Government.
(g) The
249.7001 Congressional
notification on significant contract terminations.
Congressional notification is required for any termination involving a reduction in employment of 100 or more contractor employees. Proposed terminations must be cleared through department/agency liaison offices before release of the termination notice, or any information on the proposed termination, to the contractor. Follow the procedures at PGI 249.7001 (Pop-up Window or PGI Viewer Mode) for congressional notification and release of information.
249.7002 Reserved.
249.7003 Notification of
anticipated contract terminations or reductions.
(a) Section 1372 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) and Section 824 of the National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-201) are intended to help establish benefit eligibility under the Job Training Partnership Act (29 U.S.C. 1661 and 1662) for employees of DoD contractors and subcontractors adversely affected by termination or substantial reductions in major defense programs.
(b) Departments and agencies are responsible for establishing procedures to:
(1) Identify which contracts (if any) under major defense programs will be terminated or substantially reduced as a result of the funding levels provided in an appropriations act.
(2) Within 60 days of the enactment of such an act, provide notice of the anticipated termination of or substantial reduction in the funding of affected contracts—
(i) Directly to the Secretary of Labor; and
(ii) Through the contracting officer to each prime contractor.
(c) Use the clause at 252.249-7002, Notification of Anticipated Contract Termination or Reduction, in all contracts under a major defense program.