5046.1 All contracts awarded by the Contracting Officer shall include “Termination for Default” and “Termination for Convenience” clauses specifically defining the OAG’s termination rights.

5046.2 When exercising the OAG’s rights under a termination clause in the contract, the Contracting Officer shall provide the contractor with a written notice specifying:

1. (a) Whether the termination is for default or for convenience;
2. (b) The effective date of the termination;
3. (c) The extent of the termination if the termination is partial; and
4. (d) Any special instructions that apply to the termination (for example, instructions concerning the disposition of contract inventory).

5046.3 After terminating a contract for convenience, the Contracting Officer shall request a settlement proposal from the contractor and shall attempt to negotiate a settlement that resolves all of the parties’ rights and liabilities (except those arising from any portion of the contract still in effect). If the parties negotiate a settlement, the Contracting Officer shall prepare a memorandum describing the principal elements of the settlement and shall include the memorandum in the contract file. If the parties fail to negotiate a settlement within one year from the effective date of termination, the contracting officer shall make a final determination of settlement.

SOURCE: Final Rulemaking published at 65 DCR 4406 (April 20, 2018).