(a) General. The contracting officer shall terminate contracts for convenience or default only by a written notice to the contractor (see 49.601). When the notice is mailed, it shall be sent by certified mail, return receipt requested. When the contracting office arranges for hand delivery of the notice, a written acknowledgement shall be obtained from the contractor. The notice shall state-
(1) That the contract is being terminated for the convenience of the Government (or for default) under the contract clause authorizing the termination;
(2) The effective date of termination;
(3) The extent of termination;
(4) Any special instructions; and
(5) The steps the contractor should take to minimize the impact on personnel if the termination, together with all other outstanding terminations, will result in a significant reduction in the contractor’s work force (see paragraph (g) of the notice in 49.601-2). If the termination notice is by telegram, include these “steps” in the confirming letter or modification.
(b) Distribution of copies. The contracting officer shall simultaneously send the termination notice to the contractor, and a copy to the contract administration office and to any known assignee, guarantor, or surety of the contractor.
(c) Amendment of termination notice. The contracting officer may amend a termination notice to-
(1) Correct nonsubstantive mistakes in the notice;
(2) Add supplemental data or instructions; or
(3) Rescind the notice if it is determined that items terminated had been completed or shipped before the contractor’s receipt of the notice.
(d) Reinstatement of terminated contracts. Upon written consent of the contractor, the contracting office may reinstate the terminated portion of a contract in whole or in part by amending the notice of termination if it has been determined in writing that -
(1) Circumstances clearly indicate a requirement for the terminated items; and
(2) Reinstatement is advantageous to the Government.
