D.C. Municipal Regulations (Last Updated: September 13, 2017) |
Title 27. CONTRACTS AND PROCUREMENT |
Chapter 27-37. TERMINATION OF CONTRACTS |
Section 27-3700. GENERAL PROVISIONS
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3700.1The contracting officer may terminate a contract for the convenience of the District, in whole or in part, if the contracting officer determines that the termination is in the best interests of the District.
3700.2The contracting officer may terminate a contract for default, in whole or in part, if the termination is in the best interests of the District, and the contractor does any of the following:
(a)Fails to deliver the goods or complete the work or services within the time specified in the contract or any modification;
(b)Fails to make sufficient progress on contract performance so as to endanger performance of the contract within the time specified or in the manner specified in the contract;
(c)Fails or refuses to go forward with the work in accordance with the directions of the contracting officer;
(d)Expresses through word or conduct an intention not to complete the work in a timely manner; or
(e)Fails to perform any of the other provisions of the contract.
3700.3The contracting officer may effect a no-cost settlement instead of issuing a termination notice when the following circumstances apply:
(a)The contracting officer knows that the contractor will accept a no-cost settlement;
(b)District property was not furnished to the contractor; and
(c)There are no outstanding payments, debts due to the District, or other contractor obligations.
3700.4If the same item is under contract with a business that is not certified with the District of Columbia Local Business Opportunity Commission (“LBOC”) and a business that is certified by the LBOC, and it is necessary to terminate for convenience part of the units still to be delivered, the contracting officer shall give preference to the continuing performance of the certified minority business by terminating all or part of the contract held by the non-certified business unless the Director determines that to do so is not in the best interests of the District.
3700.5Upon written consent of the contractor, the contracting officer may reinstate the terminated portion of a contract, in whole or in part, by amending the notice of termination if the contracting officer determines that the following circumstances apply:
(a)There is a definite requirement for the terminated items; and
(b)Reinstatement is in the best interests of the District.
3700.6When the price of the undelivered balance of a contract is less than two thousand dollars ($2,000), the contracting officer shall not terminate the contract for convenience, but shall permit it to run to completion.
3700.7When a construction contract is terminated, the contracting officer shall take action to ensure site cleanup, protection of serviceable materials, removal of hazards, and other steps necessary to leave a safe and healthful site.
3700.8In each solicitation and contract, the contracting officer shall include a clause, approved by the Director, giving notice of the District's right to terminate the contract for convenience or default. The contracting officer shall also insert a clause, approved by the Director, which gives notice of exceptions to the District's right to terminate for default when the delay or failure to perform is excusable due to causes beyond the control and without the fault or negligence of the contractor.