3715 TERMINATION OF COST-REIMBURSEMENT CONTRACTS FOR DEFAULT

3715.1 The termination clause of a cost-reimbursement type contract shall require the contracting officer to provide the contractor with at least ten (10) days notice before issuance of a notice of termination for default.

3715.2 Settlement of a cost-reimbursement contract terminated for default shall be in accordance with the provisions of §3703, except as follows:

(a) The costs of preparing the contractor's settlement proposal shall not be allowable; and

(b) The contractor shall be reimbursed for all allowable costs and an appropriate reduction shall be made in the total fee, if any.

SOURCE: Final Rulemaking publishing at 35 DCR 1703 (February 26, 1988).