41 U.S.C. § 111 : US Code - Section 111: Termination of contracts

Search 41 U.S.C. § 111 : US Code - Section 111: Termination of contracts

(a) Advance notice; prime contracts
In order to facilitate the efficient use of materials, manpower,
and facilities for war and civilian purposes, each contracting
agency -
(1) shall provide its prime contractors with notice of
termination of their prime contracts as far in advance of the
cessation of work thereunder as is feasible and consistent with
the national security without permitting unneeded production or
performance;
(2) shall establish procedures whereby prime contractors shall
provide affected subcontractors with immediate notice of
termination; and
(3) shall permit the continuation of some or all of the work
under a terminated prime contract whenever the agency deems that
such continuation will benefit the Government or is necessary to
avoid substantial injury to the plant or property.
(b) Cessation of work without termination
Whenever a contracting agency hereafter directs a prime
contractor to cease or suspend all or a substantial part of the
work under a prime contract, without terminating the contract,
then, unless the contract provides otherwise, (1) the contracting
agency shall compensate the contractor for reasonable costs and
expenses resulting from such cessation or suspension, and (2) if
the cessation or suspension extends for thirty days or more, the
contractor may elect to treat it as a termination by delivering
written notice of his election so to do to the contracting agency,
at any time before the contracting agency directs the prime
contractor to resume work under the contract.
(c) Authority of Administrator of General Services; classes of
contracts
The Administrator of General Services shall have no authority
under this chapter to regulate or control the classes of contracts
to be terminated by the contracting agencies.