MP5349.501-70 Special Termination Costs.

(a)  Contracting officers shall refer to Volume 2A, Chapter 1, Section 010214, paragraph C.2.a of DoD 7000.14-R, DoD Financial Management Regulation, for Congressional notification and additional approval requirements for Special Termination Cost Clauses (STCCs). Because STCCs require special notification to Congress and entail a long approval process over which the Air Force has little control, the contracting officer should allow SAF/AQC, safaqc.workflow@pentagon.af.mil, sufficient time to process requests to use DFARS 252.249-7000, Special Termination Costs (i.e. not less than 90 days prior to contract award). The request shall include the following:

(i)  A detailed breakdown of applicable cost categories in the clause at DFARS 252.249-7000 (a)(1) through (5), which includes the reasons for the anticipated incurrence of the costs in each category;

(ii)  Information on the financial and program need for the clause including an assessment of the contractor's financial position and the impact of a failure to receive authority to use the clause; and

(iii)  Clear evidence that only costs that arise directly from a termination would be compensated under the clause. Costs that would be incurred by the Government, regardless of whether a termination occurs, shall not be covered by a STCC.

(c)  The contracting officer shall request SAF/FM approval through SAF/AQC, safaqc.workflow@pentagon.af.mil, prior to authorizing any increase in the Government's maximum liability under the clause.