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FAR and DFARS › FAR Part 8: Required Sources of Supplies and Services › Subpart 8.4

FAR 8.406-5 Termination for the Government's convenience.

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 that an ordering activity contracting officer can terminate individual orders for the Government's convenience, but must follow FAR 12.403. Before terminating, the officer should try to reach a no-cost settlement with the contractor. Only the schedule contracting officer can modify the schedule contract to terminate supplies or services for convenience.

Applies to: Government contractors with schedule contracts and orders

What it requires

  • Comply with FAR 12.403 for terminations for convenience
  • Endeavor to enter into a no-cost settlement agreement before terminating orders

Key terms: termination for the Government's convenience · ordering activity contracting officer · no cost settlement agreement · schedule contracting officer · schedule contract

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

The text

(a) An ordering activity contracting officer may terminate individual orders for the Government's convenience. Terminations for the Government's convenience shall comply with FAR 12.403.

(b) Before terminating orders for the Government's convenience, the ordering activity contracting officer shall endeavor to enter into a “no cost” settlement agreement with the contractor.

(c) Only the schedule contracting officer may modify the schedule contract to terminate any, or all, supplies or services covered by the schedule contract for the Government's convenience.

Sections it refers to

← 8.406-4 Termination for cause. · 8.406-6 Disputes. →

Rule changes for FAR Part 8

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

FAR 8.406-5 Termination for the Government's convenience · SpendQuery