FAR and DFARS › DFARS Part 249: Termination of Contracts › Subpart 249.70

DFARS 249.7003 Notification of anticipated contract terminations or reductions.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section describes how the Department of Defense and its contractors must notify workers about anticipated terminations or substantial reductions in major defense programs, so those workers can seek federal workforce benefits. It matters to contractors because prime contractors must pass notice down to certain first-tier subcontractors and require further notice down the chain.

Applies to: DoD departments and agencies, prime contractors, and subcontractors on major defense programs

What it requires

Prime contractors must notify first-tier subcontractors with subcontracts valued at $700,000 or more of the termination or substantial reduction in funding.
Prime contractors must require each such subcontractor to notify its own subcontractors for subcontracts valued greater than $150,000.
Prime contractors must require each such subcontractor to impose a similar notice and flowdown requirement in subcontracts valued greater than $150,000 at all tiers.

Key terms: major defense programs · prime contractor · first-tier subcontractor · substantial reduction · flowdown requirement

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Section 1372 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) and section 824 of the National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-201) are intended to help establish benefit eligibility under the Workforce Innovation and Opportunity Act (29 U.S.C. Chapter 32) for employees of DoD contractors and subcontractors adversely affected by termination or substantial reductions in major defense programs.

(b) Departments and agencies are responsible for establishing procedures to—

(1) Identify which contracts (if any) under major defense programs will be terminated or substantially reduced as a result of the funding levels provided in an appropriations act; and

(2) Within 60 days of the enactment of such an act, provide notice of the anticipated termination of or substantial reduction in the funding of affected contracts—

(i) Directly to the Secretary of Labor; and

(ii) Through the contracting officer to each prime contractor.

(1) Providing notice of the termination or substantial reduction in funding to all first-tier subcontractors with a subcontract valued equal to or greater than $700,000; and

(2) Requiring that each subcontractor—

(i) Provide such notice to each of its subcontractors for subcontracts valued greater than $150,000; and

(ii) Impose a similar notice and flowdown requirement in subcontracts valued greater than $150,000 at all tiers.

Sections that refer to it

243.107-70 Notification of substantial impact on employment.
252.249-7002 Notification of Anticipated Contract Termination or Reduction.

← 249.7002 [Reserved] · 249.7004 Contract clause. →

Rule changes for DFARS Part 249

Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-07-29 · effective 2024-07-29

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.