FAR 49.402-4 Procedure in lieu of termination for default

Subsection Federal Acquisition Regulation

Facts

Citation
FAR 49.402-4
Type
Subsection
Proposed changes
1
Text as of
FAC 2026-01
Official text
acquisition.gov

Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.

Text

The following courses of action, among others, are available to the contracting officer in lieu of termination for default when in the Government’s interest:

(a) Permit the contractor, the surety, or the guarantor, to continue performance of the contract under a revised delivery schedule.

(b) Permit the contractor to continue performance of the contract by means of a subcontract or other business arrangement with an acceptable third party, provided the rights of the Government are adequately preserved.

(c) If the requirement for the supplies and services in the contract no longer exists, and the contractor is not liable to the Government for damages as provided in 49.402-7, execute a no-cost termination settlement agreement using the formats in 49.603-6 and 49.603-7 as a guide.

Proposed changes

Proposed rule Published Comments
Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 91 FR 37698 · FAR Case 2026-007, Docket No. FAR-2026-0007, Sequence No. 1 Closed Jul 23, 2026No final rule found

Sections cited

Quick answers

What is FAR 49.402-4?

FAR 49.402-4 is a subsection of the Federal Acquisition Regulation, titled "Procedure in lieu of termination for default".

Are changes to FAR 49.402-4 proposed?

One proposed change has no final rule yet.

On GovTribe

Follow the rules behind federal contracts

  • Search Federal Register rules and proposed rules for the FAR, DFARS and agency supplements
  • Solicitations, awards and government files in one search
  • Ask GovTribe AI about the rules that apply to a contract
Try for free Login