C.F.R. » Title 48 » CHAPTER 1—FEDERAL ACQUISITION REGULATION › SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES › PART 13—SIMPLIFIED ACQUISITION PROCEDURES › Subpart 13.3—Simplified Acquisition Methods

48 C.F.R. § 13.302-4

13.302-4 Termination or cancellation of purchase orders.

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(a) If a purchase order that has been accepted in writing by the contractor is to be terminated, the contracting officer shall process the termination in accordance with—

(1) 12.403 and 52.212-4(l) or (m) for commercial products and commercial services; or

(2) Part 49 or 52.213-4 for other than commercial products and commercial services.

(b) If a purchase order that has not been accepted in writing by the contractor is to be canceled, the contracting officer shall notify the contractor in writing that the purchase order has been canceled, request the contractor's written acceptance of the cancellation, and proceed as follows:

(1) If the contractor accepts the cancellation and does not claim that costs were incurred as a result of beginning performance under the purchase order, no further action is required (i.e., the purchase order shall be considered canceled).

(2) If the contractor does not accept the cancellation or claims that costs were incurred as a result of beginning performance under the purchase order, the contracting officer shall process the action as a termination prescribed in paragraph (a) of this subsection.

[62 FR 64917, Dec. 9, 1997, as amended at 72 FR 13586, Mar. 22, 2007; 86 FR 61025, Nov. 4, 2021]
Notes of Decisions
Cited in 2 cases, 2006–2006 · leading case: Smart Bus. Machines v. United States, 72 Fed. Cl. 706 (Fed. Cl. 2006).
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Smart Bus. Machines v. United States, 72 Fed. Cl. 706 (Fed. Cl. 2006). · cites it 6× “SBM contends that the government’s April 5, 2004 notice that the purchase order lapsed when SBM failed to make delivery was unlawful because the government failed to seek SBM’s acceptance of the “cancellation” in accordance with 48 C.F.R. § 13.302-4 . SBM claims that under 48 C.”
Kaeper Mach., Inc. v. United States, 74 Fed. Cl. 1 (Fed. Cl. 2006). “Specifically, the court explained: Thus, 48 C.F.R. § 13.302-4 protects suppliers in cases where the government cancels or terminates a purchase order before the supplier has had an opportunity to comply with the purchase order’s delivery date.”
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