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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.4

FAR 49.402-6 Repurchase against contractor's account.

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 tells the contracting officer how to buy replacement supplies or services after a default termination, charging the cost to the defaulting contractor's account. It matters because the contractor may owe the government the extra cost if the repurchase price is higher than the terminated contract price.

Applies to: Contracting officers repurchasing after a default termination, and the defaulting contractor whose account is charged

What it requires

  • Repurchase the same or similar supplies or services against the contractor's account as soon as practicable
  • Repurchase at as reasonable a price as practicable, considering quality and delivery requirements
  • Obtain competition to the maximum extent practicable for the repurchase
  • Cite the Default clause as the authority for the repurchase

Key terms: repurchase · contractor's account · undelivered quantity terminated for default · Default clause · excess cost

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

The text

(a) When the supplies or services are still required after termination, the contracting officer shall repurchase the same or similar supplies or services against the contractor's account as soon as practicable. The contracting officer shall repurchase at as reasonable a price as practicable, considering the quality and delivery requirements. The contracting officer may repurchase a quantity in excess of the undelivered quantity terminated for default when the excess quantity is needed, but excess cost may not be charged against the defaulting contractor for more than the undelivered quantity terminated for default (including variations in quantity permitted by the terminated contract). Generally, the contracting officer will make a decision whether or not to repurchase before issuing the termination notice.

(b) If the repurchase is for a quantity not over the undelivered quantity terminated for default, the Default clause authorizes the contracting officer to use any terms and acquisition method deemed appropriate for the repurchase. However, the contracting officer shall obtain competition to the maximum extent practicable for the repurchase. The contracting officer shall cite the Default clause as the authority. If the repurchase is for a quantity over the undelivered quantity terminated for default, the contracting officer shall treat the entire quantity as a new acquisition. If the repurchase is for a quantity over the undelivered quantity terminated for default, the contracting officer shall treat the entire quantity as a new acquisition.

(c) If repurchase is made at a price over the price of the supplies or services terminated, the contracting officer shall, after completion and final payment of the repurchase contract, make a written demand on the contractor for the total amount of the excess, giving consideration to any increases or decreases in other costs such as transportation, discounts, etc. If the contractor fails to make payment, the contracting officer shall follow the procedures in subpart 32.6 for collecting contract debts due the Government.

Sections that refer to it

  • 49.402-2 Effect of termination for default.

← 49.402-5 Memorandum by the contracting officer. · 49.402-7 Other damages. →

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 49.402-6 Repurchase against contractor's account · SpendQuery