(b)(S-90)
(1) Contracting officers should exercise the authority to terminate a contract for convenience of the Government only after proper authorization and instructions from the activity which requested that the contract be established.
(2) Contracting officers should not terminate any contract for convenience if the contractor is in inexcusable default and the Government has a legal right to terminate for default, even if the Government’s requirements for performance no longer exist. This prohibition does not preclude a no-cost termination settlement agreement as provided for at FAR 49.402-4(c).
(3) Terminate contracts resulting from military interdepartmental purchase requests (MIPR) in accordance with DFARS 208.7004-6 and 208.7004-7.
[AFARS Revision #21, dated May 22, 2007]
