SUBPART 249.70--SPECIAL TERMINATION
(Revised September 21, 1999)
249.7000 Terminated contracts with
Canadian Commercial Corporation.
(a) Terminate contracts with the Canadian
Commercial Corporation in accordance with-
249.7001 Congressional notification
on significant contract terminations.
(1) The Letter of Agreement (LOA) between
the Department of Defence Production (Canada) and the U.S. DoD, "Canadian
Agreement" (for a copy of the LOA or for questions on its currency, contact
the Foreign Contracting Directorate, Office of the Director of Defense
Procurement, (703) 697-9351, DSN 227-9351));
(b) Contracting officers shall ensure that
the Canadian Commercial Corporation submits termination settlement proposals
in the format prescribed in FAR 49.602 and that they contain the amount
of settlements with subcontractors. The termination contracting officer
(TCO) shall prepare an appropriate settlement agreement. (See FAR 49.603.)
The letter transmitting a settlement proposal must certify-
(2) Policies in the Canadian Agreement
and Part 249; and
(3) The Manual of Procedure on Termination
of Contracts, Department of Supply and Services (Canada).
(1) That disposition of inventory has
been completed; and
(c)(1) The Canadian Commercial Corporation
(2) That the Contracts Settlement Committee
of the Supply and Services Canada (SSC) has approved settlements with Canadian
subcontractors when the Manual of Procedure on Termination of Contracts,
SSC, requires such approval.
(d) The Canadian Commercial Corporation
(CCC) should send all termination settlement proposals submitted by U.S.
subcontractors and suppliers to the TCO, Defense Contract Management Area
Operations, Ottawa, for settlement. The TCO will inform the CCC of the
amount of the net settlement of U.S. subcontractors and suppliers so that
this amount can be included in the CCC termination proposal. The Canadian
Commercial Corporation is responsible for execution of the settlement agreement
with these subcontractors.
(i) Settle all Canadian subcontractor
termination claims under the Canadian Agreement; and
(2) After screening, the TCO must provide
guidance to the Canadian Commercial Corporation for disposition of the
(ii) Submit schedules listing serviceable
and usable contractor inventory for screening to the TCO (see FAR 45.6).
(3) Settlement of Canadian subcontractor
claims are not subject to the approval and ratification of the TCO. However,
when the proposed negotiated settlement exceeds the total contract price
of the prime contract, the TCO shall obtain from the U.S. contracting officer
prior to final settlement-
(a) Congressional notification is required
for any termination involving a reduction in employment of 100 or more
contractor employees. Proposed terminations must be cleared through department/agency
liaison offices before release of the termination notice, or any information
on the proposed termination, to the contractor.
(b) Department and agency liaison offices
will coordinate timing of the congressional notification and public release
of the information with release of the termination notice to the contractor.
Department and agency liaison offices are-
(1) Army - Chief, Legislative Liaison
(c) Request clearance to release information
in accordance with departmental procedures as soon as possible after the
decision to terminate is made. Until clearance has been obtained, treat
this information as "For Official Use Only" unless the information is classified.
(2) Navy - Chief of Legislative Affairs
(3) Air Force - SAF/AQC
(4) Defense Advanced Research Projects
Agency - CMO
(5) Defense Information Systems Agency
- Contract Management Division (Code 260)
(6) Defense Intelligence Agency - RSQ
(7) Defense Logistics Agency - DLSC-P
(8) National Imagery and Mapping Agency
- HQ NIMA (AQ)
(9) Defense Threat Reduction Agency
- Acquisition Management Office (AM)
(10) National Security Agency/Central
Security Service - Chief, Office of Contracting
(11) Ballistic Missile Defense Organization
- Director of Contracts (BMDO-DCT)
(d) Include the following in the request
(1) Contract number, date, and type
(e) To minimize termination costs, liaison
offices will act promptly on all requests for clearances and provide a
response not later than two working days after receipt of the request.
(2) Name of the company;
(3) Nature of contract or end item;
(4) The reason for the termination;
(5) Contract price of the items terminated;
(6) Total number of contractor employees
involved, including the Government's estimate of the number who may be
(7) Statement of anticipated impact
on the company and the community;
(8) The area labor category, whether
the contractor is a large or small business, and any known impact on hard
core disadvantaged employment programs;
(9) Total number of subcontractors involved
and the impact in this area; and
(10) An unclassified draft of a suggested
(f) This reporting requirement is assigned
Report Control Symbol DD-A&T
249.7003 Notification of anticipated
contract terminations or reductions.
(a) Section 1372 of the National Defense
Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) and Section 824
of the National Defense Authorization Act for Fiscal Year 1997 (Pub. L.
104-201) are intended to help establish benefit eligibility under the Job
Training Partnership Act (29 U.S.C. 1661 and 1662) for employees of DoD
contractors and subcontractors adversely affected by termination or substantial
reductions in major defense programs.
(b) Departments and agencies are responsible
for establishing procedures to:
(1) Identify which contracts (if any)
under major defense programs will be terminated or substantially reduced
as a result of the funding levels provided in an appropriations act.
(c) Use the clause at 252.249-7002, Notification
of Anticipated Contract Termination or Reduction, in all contracts under
a major defense program.
(2) Within 60 days of the enactment
of such an act, provide notice of the anticipated termination of or substantial
reduction in the funding of affected contracts-