(a) Noncompliance. If an awardee materially fails to comply with the articles or terms and conditions of an agreement, whether stated in a Federal statute, regulation, assurance, application, plan, or the notice of award, the Agreements Officer (AO), meaning the cognizant warranted Department of Energy (DOE) or National Nuclear Security Administration official authorized to execute and administer other transaction (OT) agreements, may take one or more of the following actions, as appropriate:

1. (1) Temporarily withhold cash payments pending correction of the deficiency by the awardee or more severe enforcement action by the AO.
2. (2) Disallow or deny both the use of funds and any applicable cost share for all or part of the cost of the activity or action not in compliance.
3. (3) Wholly or partly suspend or terminate the current award.
4. (4) Withhold further awards for the project or program.
5. (5) Apply other remedies that may be legally available.

(b) Termination. The OT agreement must include an article that indicates that the Government may terminate the agreement in whole or in part if the awardee materially fails to comply with the articles or terms and conditions of an agreement, whether stated in a Federal statute, regulation, assurance, application, plan, or the notice of award fails to comply with the articles and requirements of the award. An agreement may include an article providing for the termination of the agreement, in whole or in part, by mutual agreement or as negotiated by the parties. In the case of proposed partial termination of the agreement, if the remaining portion of the award will not accomplish the purposes for which the agreement was made, the award may be terminated in its entirety.

1. (1) Unless otherwise negotiated, for terminations of an expenditure-based award, DOE's maximum liability is the lesser of:

   1. (i) DOE's share of allowable costs incurred up to the date of termination, or
   2. (ii) The amount of DOE funds obligated to the award.
2. (2) Unless otherwise negotiated, for terminations of a fixed-support based award, DOE shall pay the awardee for the last fully completed milestone.
3. (3) Notwithstanding paragraphs (b)(1) and (2) of this section, if the awardee initiates termination and the award includes milestone payments, the Government has no obligation to pay the awardee beyond the last completed and paid milestone.

(c) Right to appeal.

1. (1) The awardee has the right to appeal to the cognizant Senior Procurement Executive (SPE), as defined by 41 U.S.C. 1702(c), to review only the following actions:

   1. (i) A DOE determination that the awardee has failed to comply with the applicable requirements of the award;
   2. (ii) Termination of an award, in whole or in part, by DOE;
   3. (iii) The application by DOE of an indirect cost rate; and
   4. (iv) DOE disallowance of costs.
2. (2) In reviewing appeals authorized under paragraph (c)(1) of this section, the SPE is bound by the applicable law, statutes, and rules, including the requirements of this part, and by the articles or terms and conditions of the award.
3. (3) The decision of the SPE shall be the final decision of DOE.