Special Termination Costs Clause, ASPR 8-712.
Abstract
The purpose of this study project is to assist Program Managers and/or other interested persons in becoming familiar with the use of the Special Termination Costs Clause as stated in paragraph 8-712 of the Armed Services Procurement Regulation. Much of the material contained in the report was obtained by interviewing knowledgeable persons who have worked with the clause and by reading numerous reports and other documentation on the subject matter. The clause has been used in contracts only to a limited extent by the Services, primarily the Air Force. The major obstacles to increased use of the clause appear to be the small number of contracts which meet the required dollar criteria as stated in the ASPR and the possibility of violating the Anti-Deficiency Act if funds are not available to pay termination costs. The opinion of most agencies working with the clause, is that it is not necessary to have the funds cited in the clause prior to the determination to terminate the contract for the convenience of the Government. The report recommends that Program Managers make maximum use of the special termination Costs Clause when appropriate. If used, the supporting budget office should be informed of the potential liabilities over and above the dollars obligated. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1977
- Accession Number
- ADA042938
Entities
People
- Raymond F. Vachon
Organizations
- Defense Systems Management College