Subpart 1349.1—General Principles
1349.106 Fraud or other criminal conduct.
Subpart 1349.4—Termination for Default
1349.402 Termination of fixed-price contracts for default.
1349.402-3 Procedure for default
Authority: 41 U.S.C. 414; 48 CFR 1.301–1.304.
Source: 75 FR 10570, Mar. 8, 2010, unless otherwise noted.
If the terminating contracting officer (TCO) suspects fraud or other criminal conduct related to the settlement of a terminated contract, the TCO shall immediately discontinue negotiations and prepare a written report concerning the matter. The report shall be submitted to the Bureau Procurement Official, the Office of Inspector General, and the DOC suspension and debarring official. An informational copy shall be provided to Procurement Counsel.
No action relating to a default termination, including issuance of a show cause letter, cure notice, or notice of default, shall be taken unless notice has been provided to Procurement Counsel and the Procurement Executive, and the action has been reviewed for legal sufficiency.