Rhode Island Code of Regulations › Title 220 - Department of Administration › Chapter 30 - Purchases › Subchapter 00 - N/A › Part 8 - Contracts (220-RICR-30-00-8) › Section 220-RICR-30-00-8.8 - Termination and Cancellation Of Contract

Current through June 14, 2024
A. If required
				 bidder certifications are determined to be invalid, the Purchasing Agent shall
				 declare the purchase order void.
B.
				 Notice of termination by either party shall be submitted in writing to the
				 other party in accordance with the termination clause of the
				 contract.
C. Cancellation of a
				 Contract by the State
1. Cancellations of
				 Purchase Order Contracts or Master Pricing Agreements shall require the
				 signature of the Purchasing Agent or his designee.
2. A contract may be cancelled or annulled at
				 the contractor's expense upon determination by the Purchasing agent that a
				 condition of nonperformance exists.
3. "Nonperformance" shall mean lack of
				 compliance with the contract specifications and/or terms and
				 conditions.
4. Cancellation by the
				 Purchasing Agent for nonperformance shall be subject to the following rules:
a. A formal complaint of nonperformance or
				 unsatisfactory performance shall be submitted by an authorized state official
				 to the Purchasing Agent. Such complaint shall provide a description of and
				 justification for the complaint.
b.
				 The Purchasing Agent shall direct the complaint to the Standards and Inspection
				 Unit (SIU) of the Office of Purchases.
c. The SIU inspector, in conjunction with the
				 Office of Purchases official (buyer) responsible for the contract, shall be
				 authorized to attempt to resolve the problem to the satisfaction of the user
				 agency.
d. The inspector and buyer
				 shall report in writing to the Purchasing Agent whether the problem requires
				 formal action, and if the problem has not been resolved, the Purchasing Agent
				 shall notify the contractor in writing that he/she is not in compliance with
				 the contract. Such notice of nonperformance shall:
(1) specify the nature of the
				 complaint,
(2) direct the
				 contractor to take corrective action,
(3) direct the contractor to respond in
				 writing to the notice of nonperformance within a specified time period,
				 and
(4) notify the contractor that
				 failure to respond as directed may result in cancellation of the
				 order.
5. If
				 a contractor fails to take corrective action and/or respond to a notice of
				 nonperformance, the Purchasing Agent may issue a change order canceling the
				 contract.
6. If, after reviewing
				 the contractor's response, the Purchasing Agent determines that the contractor
				 is not out of compliance with the contract requirements, he shall so notify the
				 user agency and the contractor in writing, providing a rationale for his
				 decision.
7. If the Purchasing
				 Agent determines that valid extenuating circumstances out of the control of the
				 contractor have prevented compliance with the contract requirements, he shall
				 so inform the user agency and may amend the contract to provide for a
				 reasonable opportunity for the vendor to perform the contract, if
				 necessary.
8. If the Purchasing
				 Agent believes that a contractor's action or lack thereof presents a clear and
				 immediate danger to the public interest, he may request in writing that the
				 Chief Purchasing Officer authorize immediate termination of the contractual
				 relationship.
9. Copies of all
				 communications with a contractor regarding nonperformance shall be sent to the
				 contractor's bonding company, power of attorney and the Department of
				 Administration legal counsel.
10.
				 If the Purchasing Agent determines that a contractor is unwilling or unable to
				 perform a contract, he shall:
a. direct the
				 contractor's bonding company to assume responsibility for the performance of
				 the contract if a performance bond has been issued; and
b. so notify the user agency and contractor;
				 and
c. notify the contractor
				 whether he/she has been temporarily suspended or permanently debarred from the
				 state Bidders List and shall be responsible for any costs incurred by the state
				 in the completion of the contract.