MP 5349.501-70: Special Termination Costs

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(a) Contracting officers must refer to Volume 2A,
Chapter 1, paragraph 2.14.3.2.1 of DoD 7000.14-R, DoD
Financial Management Regulation, for Congressional notification
and additional approval requirements for Special Termination Cost
Clauses (STCC). Because STCCs require special notification to
Congress and entail a long approval process over which the
Department of the Air Force has little control, the contracting
officer should allow Headquarters Air Force Staff 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 must 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, must not be covered by a STCC.