[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 1999]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR124.518]

[Page 278-279]
 
                               ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 124--8(A) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS DETERMINATIONS--Table of Contents
 
                  Subpart A--8(a) Business Development
 
Sec. 124.518  How can an 8(a) contract be terminated before performance is completed?

    (a) Termination for default. A decision to terminate a specific 8(a) 
contract for default can be made by the procuring activity contracting 
officer after consulting with SBA. The contracting officer must advise 
SBA of any intent to terminate an 8(a) contract for default in writing 
before doing so. SBA may provide to the Participant any program benefits 
reasonably available in order to assist it in avoiding termination for 
default. SBA will advise the contracting officer of this effort. Any 
procuring activity contracting officer who believes grounds for 
termination continue to exist may terminate the 8(a) contract for 
default, in accordance with the Federal Acquisition Regulations (48 CFR 
chapter 1). SBA will have no liability for termination costs or 
reprocurement costs.
    (b) Termination for convenience. After consulting with SBA, the 
procuring activity contracting officer may terminate an 8(a) contract 
for convenience when it is in the best interests of the Government to do 
so. A termination for convenience is appropriate if any disadvantaged 
owner of the Participant

[[Page 279]]

performing the contract relinquishes ownership or control of such 
concern, or enters into any agreement to relinquish such ownership or 
control, unless a waiver is granted pursuant to Sec. 124.515.
    (c) Substitution of one 8(a) contractor for another. Where a 
procuring activity contracting officer demonstrates to SBA that an 8(a) 
contract will otherwise be terminated for default, SBA may authorize 
another Participant to complete performance and, in conjunction with the 
procuring activity, permit novation of the contract without invoking the 
termination for convenience or waiver provisions of Sec. 124.515.