FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: August 15, 2001

SUBJECT: Federal Acquisition Regulation (FAR); Definition of "Claim" and Terms Relating to Termination

SOURCE: Federal Register, August 15, 2001, Vol. 66, No. 158, page 42921

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that the definitions of "claim" and various other terms related to contract terminations be moved to FAR 2.101, Definitions, to clarify the applicability of definitions, eliminate redundant or conflicting definitions, and make the definitions easier to find.

EDITOR'S NOTE: This is an ongoing effort to consolidate definitions in FAR 2.101. For more on this effort, see the January 10, 2001, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-22, Miscellaneous Amendments."

DATES: Comments on the proposed rule must be submitted no later than October 15, 2001.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405; e-mail to: farcase.2000-406@gsa.gov.

FOR FURTHER INFORMATION CONTACT: Linda Klein, 202-501-3775.

SUPPLEMENTAL INFORMATION: This proposed rule would make the following changes to the FAR:

• Move the definition of "claim" from FAR 33.201, Definitions, to FAR 2.101, and revise it by deleting the confusing sentence, "A claim arising under a contract, unlike a claim relating to that contract, is a claim that can be resolved under a contract clause that provides for the relief sought by the claimant." Then, to clarify the distinction between claims that "arise under a contract" and those that "relate to a contract," the following parenthetical phrase would be added to paragraph (a) of FAR 33.213, Obligation to Continue Performance: "(A claim arising under a contract is a claim that can be resolved under a contract clause, other than the clause at 52.233-1, Disputes, that provides for the relief sought by the claimant; however, relief for such claim can also be sought under the clause at 52.233-1. A claim relating to a contract is a claim that cannot be resolved under a contract clause other than the clause at 52.233-1.)" Finally, the definition of "claim" in FAR 52.233-1 would be revised to correspond to the FAR 2.101 definition.
  
  
• The definition of "termination for convenience" would be moved from FAR 17.103, Definitions, to FAR 2.101. To clarify the difference between "termination for convenience" and "cancellation" in FAR Subpart 17.1, Multi-Year Contracts, the following would be added as new paragraph (d) of FAR 17.104, General: "The termination for convenience procedure may apply to any government contract, including multiyear contracts. As contrasted with cancellation, termination can be effected at any time during the life of the contract (cancellation is effected between fiscal years) and can be for the total quantity or partial quantity (whereas a cancellation must be for all subsequent fiscal years' quantities)."
  
  
• The definitions of "continued portion of the contract," "partial termination," and "terminated portion of the contract" would be moved from FAR 49.001, Definitions, to FAR 2.101.
  
  
• A definition of "termination of default" would be added to FAR 2.101. It would take the "general" statement in paragraph (a) of FAR 49.401 ("termination for default is generally the exercise of the government's contractual right to completely or partially terminate a contract because of the contractor's actual or anticipated failure to perform its contractual obligations") and turn it into a definition ("termination for default means the exercise of the government's right to completely or partially terminate a contract...").

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Return to the Dispatches Library.

Return to the Main Page.