Fillable Printable Service Contract Termination Letter Template

Service Contract Termination Letter Template

NOTICE OF TERMINATION FOR CONVENIENCE

Company

Attn:

Address

City, State Zip

Dear :

Notice of Termination for Convenience

Contract DTFA - - - ,

You are notified that contract number DTFA - - - is terminated completely

/partially [choose one] terminated for the Government's convenience under AMS

Clause 3.10.6- , Termination for Convenience of the Government ( ). The

termination is effective immediately upon receipt of this notice.

You shall take the following steps:

a. Stop all work, make no further shipments, and place no further orders

relating to the contract, except for the following:

(1) The continued portion of the contract, if any;

(2) Work-in-process that the Contracting Officer authorizes you to

continue for safety precautions, to clear or avoid damage to equipment, to avoid

immediate complete spoilage of work-in-process having a definite commercial value,

or to prevent any other undue loss to the Government. If you believe this authorization

is necessary or advisable, immediately notify the undersigned Contracting Officer by

telephone and obtain instructions.

b. Keep adequate records of your compliance with subparagraph a. above

showing the following:

(1) Date you received the Notice of Termination;

(2) Effective date of the termination; and

(3) Extent of completion of performance on the effective date.

c. Furnish notice of termination to each immediate subcontractor and

supplier that will be affected by this termination. The notice shall:

(1) Specify your Government contract number;

NOTICE OF TERMINATION FOR CONVENIENCE

April 2009

(2) State whether the contract has been terminated completely or

partially;

(3) Provide instructions to stop all work, make no further shipments,

place no further orders, and terminate all subcontracts under the contract, subject to the

exceptions in subparagraph a. above;

(4) Provide instructions to submit any settlement proposal promptly; and

(5) Request that similar notices and instructions be given to its immediate

subcontractors.

d. Notify the Contracting Officer of all pending legal proceedings that are

based on subcontracts or purchase orders under the contract, or in which a lien has been

or may be placed against termination inventory to be reported to the Government.

Also, promptly notify the Contracting Officer of any such proceedings that are filed

after receipt of this Notice.

e. Take any other action required by the Contracting Officer or under the

Termination clause in the contract.

As instructed by the Contracting Officer, transfer title and deliver to the Government all

termination inventory of the following types or classes, including subcontractor

termination inventory that you have the right to take:

To settle your proposal, it will be necessary to establish that all prime and subcontractor

termination inventory has been properly accounted for, in accordance with the

Government property clause(s) in the contract.

You remain liable to your subcontractors and suppliers for proposals arising because of

the termination of their subcontracts or orders. You are requested to settle these

settlement proposals as promptly as possible. For purposes of reimbursements by the

Government, settlements will be governed by the provisions of Section T3.10.6 of the

FAA Acquisition Management System Toolbox, and the applicable termination

clause(s) in the contract.

Notify the Contracting Officer of the number of items completed under the contract and

still on hand, and arrange for their delivery or other disposal.

Invoice acceptable completed end items under the contract in the usual way and do not

include them in the settlement proposal.

NOTICE OF TERMINATION FOR CONVENIENCE

April 2009

If practicable, urge subcontractors to take similar actions described in the paragraph

above.

The undersigned Contracting Officer will be in charge of the settlement of this

termination and will, upon request, provide the necessary settlement forms. Matters

not covered by this notice should be brought to the attention of the undersigned.

Please acknowledge receipt of this notice as provided below.

Contracting Officer

Acknowledgment of Notice

The undersigned acknowledges receipt of a signed copy of this notice on

. Two signed copies of this notice are returned.

(Date)

(Name)

(Title)

NOTICE OF TERMINATION FOR CONVENIENCE

April 2009