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§ 111. —  Termination of contracts.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 41USC111]

 
                       TITLE 41--PUBLIC CONTRACTS
 
                 CHAPTER 2--TERMINATION OF WAR CONTRACTS
 
Sec. 111. Termination of contracts


(a) Advance notice; prime contracts

    In order to facilitate the efficient use of materials, manpower, and 
facilities for war and civilian purposes, each contracting agency--
        (1) shall provide its prime contractors with notice of 
    termination of their prime contracts as far in advance of the 
    cessation of work thereunder as is feasible and consistent with the 
    national security without permitting unneeded production or 
    performance;
        (2) shall establish procedures whereby prime contractors shall 
    provide affected subcontractors with immediate notice of 
    termination; and
        (3) shall permit the continuation of some or all of the work 
    under a terminated prime contract whenever the agency deems that 
    such continuation will benefit the Government or is necessary to 
    avoid substantial injury to the plant or property.

(b) Cessation of work without termination

    Whenever a contracting agency hereafter directs a prime contractor 
to cease or suspend all or a substantial part of the work under a prime 
contract, without terminating the contract, then, unless the contract 
provides otherwise, (1) the contracting agency shall compensate the 
contractor for reasonable costs and expenses resulting from such 
cessation or suspension, and (2) if the cessation or suspension extends 
for thirty days or more, the contractor may elect to treat it as a 
termination by delivering written notice of his election so to do to the 
contracting agency, at any time before the contracting agency directs 
the prime contractor to resume work under the contract.

(c) Authority of Administrator of General Services; classes of contracts

    The Administrator of General Services shall have no authority under 
this chapter to regulate or control the classes of contracts to be 
terminated by the contracting agencies.

(July 1, 1944, ch. 358, Sec. 11, 58 Stat. 658; Ex. Ord. No. 9809, 
Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1, 
Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30, 1949, 
ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

                          Transfer of Functions

    Functions of Secretary of the Treasury transferred to Administrator 
of General Services by section 102(b) of act June 30, 1949, ch. 288, 63 
Stat. 380, which was classified to section 752(b) of former Title 40, 
Public Buildings, Property, and Works, and was repealed by Pub. L. 107-
217, Sec. 6(b), Aug. 21, 2002, 116 Stat. 1304.
    ``Secretary'' substituted for ``Director'' by section 8 of Ex. Ord. 
No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in the 
Appendix to Title 5, Government Organization and Employees.

                 Effective Date of Transfer of Functions

    Transfer of functions by act June 30, 1949, effective July 1, 1949, 
see section 605, formerly section 505, of act June 30, 1949, ch. 288, 63 
Stat. 403; renumbered by act Sept. 5, 1950, ch. 849, Sec. 6(a), (b), 64 
Stat. 583.



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