(a) Termination for default is generally the exercise of the Government's contractual right to completely or partially terminate a contract because of the contractor's actual or anticipated failure to perform its contractual obligations.
(b) If the contractor can establish, or it is otherwise determined that the contractor was not in default or that the failure to perform is excusable; i.e., arose out of causes beyond the control and without the fault or negligence of the contractor, the default clauses prescribed in 49.503 and located at 52.249 provide that a termination for default will be considered to have been a termination for the convenience of the Government, and the rights and obligations of the parties governed accordingly.
(c) The Government may, in appropriate cases, exercise termination or cancellation rights in addition to those in the contract clauses (see for example, paragraph (h) of the Default clause at 52.249-8).
(d) For default terminations of orders under Federal Supply Schedule contracts, see subpart 8.4.
(e) Notwithstanding the provisions of this 49.401, the contracting officer may, with the written consent of the contractor, reinstate the terminated contract by amending the notice of termination, after a written determination is made that the supplies or services are still required and reinstatement is advantageous to the Government.
Notes of Decisions
Century Marine Inc. v. United States, 153 F.3d 225 (5th Cir. 1998).
“48 C.F.R. § 49.401 (a). The Government has the right to terminate a fixed-price contract for default if the contractor fails to deliver the supplies or to perform the services within the time specified in the contract.”
Heydt v. United States, 38 Fed. Cl. 286 (Fed. Cl. 1997).
“Pursuant to the Federal Acquisition Regulation (FAR), 48 C.F.R. § 49.401 (e) (1990), the DPSC agreed to consider such a reinstatement after Sac & Fox submitted a viable and satisfactory business plan.”
Ra-Nav Labs., Inc. v. Sheila Widnall, Sec'y of the Air Force, 137 F.3d 1344 (Fed. Cir. 1998).
“48 C.F.R. § 49.401 (e) (1997). It requires amendment of the notice of termination and a written determination that the supplies are still required and that reinstatement is advantageous to the government.”
NCLN20, Inc. v. United States, 82 Fed. Cl. 103 (Fed. Cl. 2008).
“48 C.F.R. §§ 49.401 (a)-(b). . FAR 14.407-3(a) provides: If a bidder requests permission to correct a mistake and clear and convincing evidence establishes both the existence of the mistake and the bid actually intended, the agency head may make a determination permitting the…”
Linan v. Hous. Auth. /Camden (3rd Cir. 1995).
· cites it 3× “48 C.F.R. § 49.401 (b) (1993). Linan-Faye suggests, therefore, that because no such regulations exist in grant situations10 such as this, there is an expressed intent that such a conversion not be allowed.”
Century Marine Inc v. United States (5th Cir. 1998).
“48 C.F.R. § 49.401 (a). The Government has the right to terminate a fixed-price contract for default if the contractor fails to deliver the supplies or to perform the services within the time specified in the contract.”
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