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part52.dev Federal Acquisition Clause Monitor
R-DFARS PGI Section

PGI 208.7004-7

Termination for default.
Source .docx attachment →
Effective Date
March 16, 2026
Class Deviation
DFARS Part

This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0049, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.

(1) When the acquiring department terminates a contract for default, it will ask the requiring department if the supplies or services to be terminated are still required so that repurchase action can be started.

(2) The requiring department will not deobligate funds on a contract terminated for default until receipt of a settlement modification or other written evidence from the acquiring department authorizing release of funds.

(3) On the repurchase action, the acquiring department will not exceed the unliquidated funds on the defaulted contract without receiving additional funds from the requiring department.

Authoritative source

Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0049, signed March 16, 2026. Verify against the attachment before relying on this text.

Codified PGI

The codified text remains published on acquisition.gov but is superseded by this Class Deviation. View codified PGI 208.7004-7.