DFARS 252.249-7002 Notification of Anticipated Contract Termination or Reduction. Basic (Dec 2022) (Current)

As prescribed in 249.7004, use the clause at 252.249-7002, Notification of Anticipated Contract Termination or Reduction, in all contracts under a major defense program.

NOTIFICATION OF ANTICIPATED CONTRACT TERMINATION OR REDUCTION (DEC 2022)

      (a)  Definitions.  As use in this clause—

              “Major defense program” means a program that is carried out to produce or acquire a major system (as defined in 10 U.S.C. 3041(a)).

      (b)  Scope.  This clause implements section 1372 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) and section 824 of the National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-201), which are intended to help establish benefit eligibility under the Workforce Innovation and Opportunity Act (29 U.S.C. Chapter 32) for employees of DoD contractors and subcontractors adversely affected by contract terminations or substantial reductions under major defense programs.

      (c)  Notice to employees and state and local officials.

              (1)  Within 2 weeks after the Contracting Officer notifies the Contractor that contract funding will be terminated or substantially reduced, the Contractor shall provide notice of such anticipated termination or reduction to—

                    (i)  Each employee representative of the Contractor’s employees whose work is directly related to the defense contract; or

                    (ii)  If there is no such representative, each such employee;

                    (iii)  The State or entity designated by the State to carry out rapid response activities described in the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(A)(i)); and

                    (iv)  The chief elected official of the unit of general local government within which the adverse effect may occur.

              (2)  The notice provided an employee under paragraph (c)(1) of this clause shall have the same effect as a notice of termination to the employee for the purposes of determining whether such employee is eligible for training, adjustment assistance, and employment services under the Workforce Innovation and Opportunity Act (29 U.S.C. Chapter 32).

      (d)  Notice to subcontractors.  Not later than 60 days after the Contractor receives the Contracting Officer’s notice of the anticipated termination or reduction, the Contractor shall—

              (1)  Provide notice of the anticipated termination or reduction to each first-tier subcontractor with a subcontract that equals or exceeds the threshold specified in Defense Federal Acquisition Regulation Supplement (DFARS) 249.7003(c)(1) at the time of the notice; and

              (2)  Require that each such subcontractor—

                    (i)  Provide notice to each of its subcontractors with a subcontract that equals or exceeds the threshold specified in DFARS 249.7003(c)(2)(i) at the time of the notice; and

                    (ii)  Impose a similar notice and flowdown requirement to subcontractors with subcontracts that equal or exceed the threshold specified in DFARS 249.7003(c)(2)(ii) at the time of the notice.

(End of clause)
 

  (d)  Notice to subcontractors.  Not later than 60 days after the Contractor receives the Contracting Officer’s notice of the anticipated termination or reduction, the Contractor shall—

              (1)  Provide notice of the anticipated termination or reduction to each first-tier subcontractor with a subcontract that equals or exceeds the threshold specified in Defense Federal Acquisition Regulation Supplement (DFARS) 249.7003(c)(1) at the time of the notice; and

              (2)  Require that each such subcontractor—

                    (i)  Provide notice to each of its subcontractors with a subcontract that equals or exceeds the threshold specified in DFARS 249.7003(c)(2)(i) at the time of the notice; and

                    (ii)  Impose a similar notice and flowdown requirement to subcontractors with subcontracts that equal or exceed the threshold specified in DFARS 249.7003(c)(2)(ii) at the time of the notice.
 

Prime’s obligation;

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.212-4 Contract Terms and Conditions-Commercial Items.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.209-14 Reserve Officer Training Corps and Military Recruiting on Campus.

52.212-4 Contract Terms and Conditions-Commercial Items.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services.

52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

552.215-72 Price Adjustment—Failure to Provide Accurate Information.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.222-12 Contract Termination-Debarment.

52.241-10 Termination Liability.

52.249-1 Termination for Convenience of the Government (Fixed-Price) (Short Form).

52.249-10 Default (Fixed-Price Construction).

52.249-12 Termination (Personal Services).

52.249-2 Termination for Convenience of the Government (Fixed-Price).

52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).

52.249-4 Termination for Convenience of the Government (Services) (Short Form).

52.249-5 Termination for Convenience of the Government (Educational and Other Nonprofit Institutions).

52.249-6 Termination (Cost-Reimbursement).

52.249-7 Termination (Fixed-Price Architect-Engineer).

52.249-8 Default (Fixed-Price Supply and Service).

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.209-14 Reserve Officer Training Corps and Military Recruiting on Campus.

52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.

252.227-7003 Termination.

252.237-7007 Termination for Default.

252.239-7007 Cancellation or Termination of Orders.

252.249-7000 Special Termination Costs.

552.238-117 Price Adjustment—Failure To Provide Accurate Information.

552.270-7 Fire and Casualty Damage.

552.236-6 Superintendence by the Contractor.

952.204-71 Sensitive foreign nations controls.

952.209-72 Organizational conflicts of interest.

1352.209-74 Organizational conflict of interest.

Working with a set of FAR clauses from an RFP or contract?

Try pasting them into our tool to instantly generate a risk profile, including the basic flow down recommendation.

Info

Works best with Chrome and Edge browsers!