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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1

FAR 49.102 Notice of termination.

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 explains how a contracting officer must notify a contractor that its contract is being terminated for convenience or default. The notice must be in writing and include specific information such as the effective date, extent of termination, and any special instructions. It also covers how copies are distributed and when a termination notice can be amended or the contract reinstated.

Applies to: Contracting officers and contractors on terminated federal contracts

What it requires

  • The contracting officer must terminate only by written notice to the contractor.
  • The notice must state the termination is for convenience or default under the authorizing clause.
  • The notice must state the effective date and extent of termination.
  • The notice must include any special instructions and steps to minimize workforce impact if applicable.

Key terms: termination for convenience · termination for default · notice of termination · effective date of termination · reinstatement

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

The text

(a) General. The contracting officer shall terminate contracts for convenience or default only by a written notice to the contractor (see 49.601). The notice of termination may be expedited by means of electronic communication capable of providing confirmation of receipt by the contractor. When the notice is mailed, it shall be sent by certified mail, return receipt requested. When the contracting office arranges for hand delivery of the notice, a written acknowledgment shall be obtained from the contractor. The notice shall state—

(1) That the contract is being terminated for the convenience of the Government (or for default) under the contract clause authorizing the termination;

(2) The effective date of termination;

(3) The extent of termination;

(4) Any special instructions; and

(5) The steps the contractor should take to minimize the impact on personnel if the termination, together with all other outstanding terminations, will result in a significant reduction in the contractor's work force (see paragraph (g) of the notice in 49.601-2). If the termination notice is by telegram, include these steps in the confirming letter or modification.

(b) Distribution of copies. The contracting officer shall simultaneously send the termination notice to the contractor, and a copy to the contract administration office and to any known assignee, guarantor, or surety of the contractor.

(c) Amendment of termination notice. The contracting officer may amend a termination notice to—

(1) Correct nonsubstantive mistakes in the notice;

(2) Add supplemental data or instructions; or

(3) Rescind the notice if it is determined that items terminated had been completed or shipped before the contractor's receipt of the notice.

(d) Reinstatement of terminated contracts. Upon written consent of the contractor, the contracting office may reinstate the terminated portion of a contract in whole or in part by amending the notice of termination if it has been determined in writing that—

(1) Circumstances clearly indicate a requirement for the terminated items; and

(2) Reinstatement is advantageous to the Government.

Sections it refers to

← 49.101 Authorities and responsibilities. · 49.103 Methods of settlement. →

Rule changes for FAR Part 49

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

FAR 49.102 Notice of termination · SpendQuery