Overview
This section prescribes the standardized formats and procedural requirements for issuing "Cure Notices" and "Show Cause Notices" to contractors as a prerequisite for a Termination for Default under FAR 49.402-3.
Key Rules
- Proof of Delivery: All delinquency notices must be sent using a method that provides proof of delivery.
- Cure Notice Requirements:
- Issued when a contractor’s failure endangers contract performance before the delivery date.
- Can only be used if there are 10 or more days remaining in the contract delivery schedule (or an extension thereof) to allow for a realistic cure period.
- Show Cause Notice Requirements:
- Issued if the delivery date has passed or if the remaining time in the schedule is less than the 10-day minimum required for a Cure Notice.
- Provides the contractor 10 days to present written evidence that the failure arose from causes beyond their control and without their fault or negligence.
- Non-Waiver of Rights: The government's acceptance of delinquent goods or any assistance provided to the contractor does not constitute a waiver of the government's legal rights or a condonation of the delinquency.
Practical Implications
- Contracting Officers must strictly monitor delivery schedules; issuing a Cure Notice with insufficient time remaining (less than 10 days) can be a procedural error that complicates a termination action.
- These notices serve as a critical due-process mechanism, providing a "paper trail" that protects the government’s interests if a termination is later challenged in the Board of Contract Appeals or Court of Federal Claims.