28228 Federal Register / Vol. 75, No. 97 / Thursday, May 20, 2010 / Proposed Rules 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 49 

[FAR Case 2009–031; Docket 2010-0090, 

Sequence 1] 

RIN 9000–AL56 

Federal Acquisition Regulation; FAR 

Case 2009–031, Terminating Contracts 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are proposing to amend the 

Federal Acquisition Regulation (FAR) to 

provide clarification to the prescription 

for the FAR clause at 52.249–1, 

Termination for Convenience of the 

Government (Fixed Price) (Short Form), 

located in FAR 49.502(a), to apprise 

contracting officers that there are 

alternative clauses that can be used for 

terminations up to the simplified 

acquisition threshold. In addition, 

references to the FAR clauses at 52.212– 

4 and 52.213–4 are added in the 

prescription for FAR 52.249–1 at FAR 

49.502(a) and in FAR 49.002, 

Applicability. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat on or before July 19, 2010 to 

be considered in the formulation of a 

final rule. 

ADDRESSES: Submit comments 

identified by FAR Case 2009–031 by any 

of the following methods: 

•Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting ‘‘FAR 

Case 2009–031’’ under the heading 

‘‘Enter Keyword or ID’’ and selecting 

‘‘Search’’. Select the link ‘‘Submit a 

Comment’’ that corresponds with ‘‘FAR 

Case 2009–031’’. Follow the instructions 

provided at the ‘‘Submit a Comment’’ 

screen. Please include your name, 

company name (if any), and ‘‘FAR Case 

2009–031’’ on your attached document. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(MVCB), 1800 F Street, NW., Room 

4041, ATTN: Hada Flowers, 

Washington, DC 20405. 

Instructions: Please submit comments 

only and cite FAR Case 2009–031, in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jeritta Parnell, Procurement Analyst, at 

(202) 501–4082 for clarification of 

content. Please cite FAR case 2009–031. 

For information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The Defense Contract Management 

Agency (DCMA) submitted a request for 

revisions to FAR part 49 and the 

associated FAR clauses in 52.549 

regarding termination of contracts. As a 

result, the Councils are proposing to 

amend FAR 49.502(a) to clarify when 

the FAR clause at 52.249–1, 

Termination for Convenience of the 

Government (Fixed Price) (Short Form), 

is used. 

The Councils believe that clarification 

is needed in the prescription for the 

clause, to apprise contracting officers 

that there are alternative clauses that 

can be used for terminations up to the 

simplified acquisition threshold. The 

language in FAR 49.002 is revised to 

include a reference to FAR 12.403 and 

the language at FAR 49.502(a) is revised 

to include references to the FAR clauses 

at 52.212–4, Contract Terms and 

Conditions—Commercial Items, and at 

52.213–4, Terms and Conditions— 

Simplified Acquisitions (Other than 

Commercial Items). These clauses 

should be used for the majority of 

simplified acquisition terminations. 

However, the FAR clause at 52.249–1 

may be appropriate in certain situations 

where these two clauses are not 

applicable. 

The FAR clauses at FAR 52.212–4 

(basic clause) and 52.213–4 allow for 

the contractor to be paid a percentage of 

the contract price reflecting the 

percentage of the work performed prior 

to the notice of termination for 

convenience, plus reasonable charges 

the contractor can demonstrate to the 

satisfaction of the Government using its 

standard record keeping system have 

resulted from the termination. There is 

no need for partial payments under 

these circumstances. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

B. Regulatory Flexibility Act 

The Councils do not expect this 

proposed rule to have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq., because this 

proposed rule merely clarifies existing 

FAR policy. An Initial Regulatory 

Flexibility Analysis has, therefore, not 

been performed. The Councils invite 

comments from small business concerns 

and other interested parties on the 

expected impact of this rule on small 

entities. 

The Councils will also consider 

comments from small entities 

concerning the existing regulations in 

parts affected by this rule in accordance 

with 5 U.S.C. 610. Interested parties 

must submit such comments separately 

and should cite 5 U.S.C. 610 (FAR Case 

2009–031) in all correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the proposed changes 

to the FAR do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. Chapter 35, 

et seq. 

List of Subjects in 48 CFR Part 49. 

Government procurement. 

Dated: May 14, 2010. 

Al Matera, 

Director, Acquisition Policy Division. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR part 49 as set 

forth below: 

PART 49—TERMINATION OF 

CONTRACTS 

1. The authority citation for 48 CFR 

part 49 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

49.002 Applicability. 

2. Amend section 49.002 by removing 

from paragraph (a) ‘‘(see also 13.302–4)’’ 

and adding ‘‘(see also 12.403 and 

13.302–4)’’ in its place. 

3. Amend section 49.502 by revising 

paragraph (a)(1) to read as follows: 

49.502 Termination for convenience of the 

Government. 

(a) Fixed-price contracts that do not 

exceed the simplified acquisition 

threshold (short form)—(1) General use. 

The contracting officer shall insert the 

clause at 52.249–1, Termination for 


wwoods2 on DSK1DXX6B1PROD with PROPOSALS_PART 1
Federal Register / Vol. 75, No. 97 / Thursday, May 20, 2010 / Proposed Rules 28229 

Convenience of the Government (FixedPrice) (Short Form), in solicitations and 

contracts when a fixed-price contract is 

contemplated and the contract amount 

is not expected to exceed the simplified 

acquisition threshold, except— 

(i) If use of the clause at 52.249–4, 

Termination for Convenience of the 

Government (Services) (Short Form) is 

appropriate; 

(ii) In contracts for research and 

development work with an educational 

or nonprofit institution on a no-profit 

basis; 

(iii) In contracts for architect-engineer 

services; 

(iv) If one of the clauses prescribed or 

cited at 49.505(a) or (c), is appropriate; 

or 

(v) When the clause at 52.212–4 or 

52.213–4 is used. (See 12.403(a) or 

13.302–5(d)(1)). 

* * * * * 

[FR Doc. 2010–12136 Filed 5–19–10; 8:45 am] 

BILLING CODE 6820–EP–S 


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