Skip to main content
Loading…
This section is included in your selections.

(a) Termination Methods. A contract may be terminated in three ways:

(1) A contract may be terminated for default. If the contractor materially breaches the contract, WSSC, at its option, may cancel, in whole or in part, work under the contract. A termination for default is a termination for convenience if the termination for default is later found to be without justification.

(2) A contract may be terminated for convenience at the option of WSSC if the termination is in the best interests of WSSC. Termination for convenience may entitle the contractor to payment for reasonable costs allocable to the contract for work or costs incurred by the contractor up to the date of termination. The contractor shall not be paid compensation as a result of a termination for convenience that exceeds the amount encumbered to pay for work to be performed under the contract.

(3) In special circumstances, a contract may be terminated by mutual consent of the parties.

(b) Authority to Terminate. Only the Chief Procurement Officer may terminate a contract. The General Counsel’s Office must approve each contract termination.

(c) Termination for Default.

(1) The using department must provide the Chief Procurement Officer with documentation demonstrating a material breach of the contract by the contractor.

(2) If the Chief Procurement Officer finds that the contractor is in default, the Chief Procurement Officer must provide the contractor with a written notice to cure the default. If the Chief Procurement Officer determines that the default contributes to the curtailment of an essential service or poses an immediate threat to life, health, or property, the Chief Procurement Officer may terminate the contract immediately by issuing an oral or written notice to the contractor without giving any prior notice or opportunity to cure.

(3) The General Counsel’s Office must approve the issuance of the notice to cure and the issuance of a termination for default.

(4) If the contractor disputes the issuance of a termination for default, the contractor may file a timely claim under WSSC 6.15.560. The contractor may not file a claim in response to a notice to cure.

(d) Termination for Convenience.

(1) The using department must provide the Chief Procurement Officer with documentation demonstrating that termination of the contract for convenience is in the best interests of WSSC.

(2) If the Chief Procurement Officer finds that the contract should be terminated for convenience, the Chief Procurement Officer must provide the contractor with written notice that the contract will be terminated for convenience on the date specified in the notice. The notice must require the contractor to provide the Chief Procurement Officer with documentation indicating the amount to which the contractor claims it is due as a result of the termination for convenience.

(3) Within the time specified in the notice of termination for convenience, the contractor must provide the Chief Procurement Officer with documentation substantiating the amount the contractor asserts it is due as a result of the termination for convenience.

(4) If the Chief Procurement Officer and the contractor agree on the amount due the contractor as a result of the termination for convenience, WSSC and the contractor must enter into a contract modification setting forth the amount due the contractor as a result of the termination for convenience.

(5) The General Counsel’s Office must approve the issuance of the notice of termination for convenience and any resulting contract modification.

(6) If the contractor and the Chief Procurement Officer cannot agree on the amount due the contractor as a result of the termination for convenience, the contractor may file a timely claim under WSSC 6.15.560.

(e) Termination by Mutual Consent.

(1) The using department must provide the Chief Procurement Officer with documentation justifying termination of a contract by mutual consent.

(2) If the Chief Procurement Officer finds that it is in the best interests of WSSC to terminate the contract by mutual consent, the Chief Procurement Officer may enter into a termination agreement.

(3) The General Counsel’s Office must approve a termination agreement. (Procurement regulations § 6-105, dated August 1, 2012)