CONTRACT EXPIRATION/TERMINATION
Steps | Tasks | Sources |
CONTRACT EXPIRATION/TERMINATION | ||
10 | (a) Exercise the appropriate exit strategy before contract termination or expiration: (i) If contract includes WS investment (A) CO consults the IS for assistance if needed when exercising the exit strategy involving WS investment; (B) CO ensures all investments (i.e., funds, raw materials, finished good, etc.) are recouped and recovered to the maximum extent possible; (C) CO exercises S&S exit strategy as stated in the contract and recoup/recover all Government investment. If Government investment cannot be recouped or recovered due to unforeseen circumstance (e.g., bankruptcy) and the existing exit strategy cannot be applied, CO can exercise an alternate exit strategy that is in the best interest of the Government. Consults IS for assistance and elevates to HQ DLA J-74 if necessary for alternatives. (ii) If contract does not include Government investment, (A) CO exercises the exit strategy IAW the contract; (B) CO considers Government's stock position and the lead time for establishing follow-on contract when exercising the exit strategy. Consider backorder, stock-out, customer support gap, and acquisition timeline when determining disposition of surge coverage. (b) If terminating the contract, CO notifies the IS immediately to determine alternate surge support strategy. (c) CO documents the result of the exit strategy in the contract file for future use as lessons learned. | |