[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31665-31666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14548]



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DEPARTMENT OF DEFENSE
48 CFR Part 52

[FAC 90-39; FAR Case 91-102; Item XXXIII]
RIN 9000-AF55


Federal Acquisition Regulation; Termination for Convenience

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to clarify language in the 
``Termination for Convenience of the Government (Fixed-Price)'' clause. 
This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993, 
and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-39, FAR case 91-102.

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published in the Federal Register at 58 FR 
64826, December 9, 1993. The proposed rule amended the clause at FAR 
52.249-2, Termination for Convenience of the Government (Fixed-Price), 
to clarify existing language. Changes were made to clarify that 
incremental payments may be involved in some instances, such as a 
partial termination action, and to clarify the two instances when the 
contractor forfeits its right of appeal. After evaluation of public 
comments, the Councils agreed to two changes in the proposal. The first 
change revises paragraph (e) of the clause by replacing the word 
``amended'' with the word ``modified.'' The second change revises 
paragraph (i) by deleting the phrase ``following a claim and final 
decision.''

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and

[[Page 31666]]

the National Aeronautics and Space Administration certify that this 
final rule will not 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 it simply clarifies 
existing language pertaining to settlement of contract termination 
costs. No comments were received on the impact of this rule on small 
entities during the public comment period.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 52

    Government procurement.

    Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 52.249-2 is amended by revising the date in the clause 
heading; and revising paragraphs (e) and (i) of the clause to read as 
follows:


Sec. 52.249-2  Termination for Convenience of the Government (Fixed-
Price).

* * * * *

TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) (AUG 1996)

* * * * *
    (e) Subject to paragraph (d) of this clause, the Contractor and 
the Contracting Officer may agree upon the whole or any part of the 
amount to be paid or remaining to be paid because of the 
termination. The amount may include a reasonable allowance for 
profit on work done. However, the agreed amount, whether under this 
paragraph (e) or paragraph (f) of this clause, exclusive of costs 
shown in subparagraph (f)(3) of this clause, may not exceed the 
total contract price as reduced by (1) the amount of payments 
previously made and (2) the contract price of work not terminated. 
The contract shall be modified, and the Contractor paid the agreed 
amount. Paragraph (f) of this clause shall not limit, restrict, or 
affect the amount that may be agreed upon to be paid under this 
paragraph.
* * * * *
    (i) The Contractor shall have the right of appeal, under the 
Disputes clause, from any determination made by the Contracting 
Officer under paragraph (d), (f), or (k) of this clause, except that 
if the Contractor failed to submit the termination settlement 
proposal or request for equitable adjustment within the time 
provided in paragraph (d) or (k), respectively, and failed to 
request a time extension, there is no right of appeal.
* * * * *

(End of clause)

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[FR Doc. 96-14548 Filed 6-19-96; 8:45 am]
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