§ 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.