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Class Deviation 2011-O0002 - Congressional Notification on Significant Contract Termination

Summary

This deviation authorizes contracting officers to deviate from Defense Federal Acquisition Regulation Supplement (DFARS) 249.7001 for certain contract terminations in Iraq and Afghanistan. The requirement to provide congressional notification before executing a termination does not apply when the terminated contract is held by a non-United States firm and involves a reduction of 100 or more contractor employees. A United States firm is one incorporated or legally organized in the United States.

Required Contracting Officer Actions

  1. Do not provide congressional notification under DFARS 249.7001 before terminating a contract held by a non-U.S. firm performed in Iraq or Afghanistan where the termination reduces employment by 100 or more contractor employees.
  2. Determine whether the contractor is a U.S. firm by confirming whether it is incorporated or legally organized in the United States. Apply this deviation only if the contractor is not a U.S. firm.

Notes

Duration: This deviation remains in effect until incorporated into the DFARS or until rescinded. No expiration date applies.

Point of Contact: Direct questions to Mary Overstreet at 703-602-0311 or mary.overstreet@osd.mil.

Suggested Questions

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  • What actions do I need to take for this deviation?
  • Does this deviation affect commercial acquisitions under Part 12?
  • Which clauses need to be removed from my existing contracts?
  • Are there any SAM registration implications?