(b) Notwithstanding a change in requirements, a contract is not to be terminated for convenience (except at no cost to the Government as provided in FAR 49.402-4(c)) if the contractor is in unexcusable default and the Government has a legal right to terminate such contract for default.
(c) The undelivered balance of $5000 is to be used as a guideline by the Post-Award Acquisition Specialist (AS) when other cost evaluation measures are not available. When Termination Decision Model (TDM) data indicate that a termination (whole or partial) would be cost effective, such information shall be considered, along with other relevant information, in making a sound termination decision by the Post-Award AS, in coordination with the Supply Planner for DLA Direct items or CAS for Customer Direct items. Accordingly, unless termination is clearly not in the Government's best interest (see 43.103(a)(90)(1)(i)), all contract due-ins with positive potential savings shall be considered for cancellation/reduction regardless of the dollar value when workload permits. Any contractually-binding decisions made by the Post-Award AS are subject to contracting officer approval if the Post-Award AS has no warrant (see 11.401-90(a)(2)).
