Section 27-3711. TERMINATION FOR DEFAULT PROCEDURES

 

3711.1When a termination for default is being considered, the contracting officer shall decide which type of termination action to take after consultation with contracting and technical personnel and legal counsel.

 

3711.2Except as provided in §3715.1, when a contractor has defaulted by failure to make delivery of goods or failure to perform the services within the specified time, no notice to the contractor of the failure or the possibility of termination shall be required before the actual notice of termination. However, if the District has taken any action that might be construed as a waiver of the contract delivery and performance date, the contracting officer shall send a notice to the contractor setting a new date for the contractor to make delivery or complete performance. The notice shall reserve the District's rights under the default clause of the contract.

 

3711.3When the contractor fails to perform provisions of the contract other than those specified in §3711.2, or fails to make sufficient progress on contract performance so as to endanger performance of the contract, the contracting officer shall give the contractor written notice specifying the failure and providing a period of not less than ten (10) days in which to cure the failure. Upon expiration of the period specified in the cure notice, the contracting officer may issue a notice of termination for default unless it is determined that the failure to perform has been cured.

 

3711.4When a termination for default appears imminent, the contracting officer may provide a written notification of that fact to the surety. This notification shall not be a notice of default.

 

3711.5If the contractor is a certified minority business, the contracting officer shall forward a copy of any cure notice or show cause notice under §3712 to the District of Columbia Local Business Opportunity Commission.

 

3711.6The contracting officer shall consider the following factors in determining whether to terminate a contract for default:

 

(a)The terms of the contract and applicable laws and regulations;

 

(b)The specific failure of the contractor and the excuses for the failure, if any;

 

(c)The availability of the goods or services from other sources;

 

(d)The urgency of the need for the goods or services and the period of time required to obtain them from other sources, as compared with the time for delivery that could be obtained from the delinquent contractor;

 

(e)The degree to which the contractor is essential to the District procurement program and the effect of a termination for default upon the contractor's capability as a supplier under other contracts;

 

(f)The effect of a termination for default on the ability of the contractor to liquidate guaranteed loans, progress payments, or advance payments; and

 

(g)Any other pertinent facts and circumstances.

 

3711.7In addition to the requirements set forth in §3711.6, in the case of a construction contract, promptly after issuance of the termination notice, the contracting officer shall determine the manner in which the work is to be completed and whether the materials, appliances, and plant that are on the site will be needed.

 

3711.8When a contract is terminated for default, or an alternative procedure is authorized instead of default under §3714, the contracting officer shall prepare a memorandum for the contract file explaining the reasons for the action taken.

 

source

Final Rulemaking publishing at 35 DCR 1699 (February 26, 1988).