Purchaser and FTA, as they may be amended or promulgated from time to time during the term of this contract.
Contractor's failure to so comply shall constitute a material breach of this contract.
Termination
49 U.S.C. Part 18
FTA Circular 4220,1F
a. Termination for Convenience (General Provision) Purchaser, may terminate this contract, in whole or
in part, at any time by written notice to the Contractor when it is in the Government's best interest. The
Contractor shall be paid its costs, including contract close-out costs, and profit on work performed up
to the time of termination. The Contractor shall promptly submit its termination claim to Purchaser, to
be paid to the Contractor. If the Contractor has any property in its possession belonging to the
Purchaser, the Contractor will account for the same, and dispose of it in the manner the Purchaser
directs.
b. Termination for Defauit [Breach or Cause] (General Provision) If the Contractor does not deliver
supplies in accordance with the contract delivery schedule, or, if the contract is for services, the
Contractor fails to perform in the manner called for in the contract, or if the Contractor fails to comply
with any other provisions of the contract, Purchaser, may terminate this contract for default.
Termination shall be effected by serving a notice of termination on the contractor setting forth the
manner in which the Contractor is in default. The contractor will only be paid the contract price for
supplies delivered and accepted, or services performed in accordance with the manner of performance
set forth in the contract.
If itis later determined by Purchaser, that the Contractor had an excusable reason for not performing,
such as a strike, fire, or flood, events which are not the fault of or are beyond the control of the
Contractor, Purchaser, after setting up a new delivery of performance schedule, may allow the
Contractor to continue work, or treat the termination as a termination for convenience.
c. Opportunity to Cure (General Provision) Purchaser, in its sole discretion may, in the case of a
termination for breach or default, allow the Contractor [an appropriately short period of time] in which
to cure the defect. In such case, the notice of termination will state the time period in which cure is
permitted and other appropriate conditions
If Contractor fails to remedy to Purchaser’s satisfaction the breach or default of any of the terms,
covenants, or conditions of this Contract within [ten (16) days] after receipt by Contractor of written
notice from Purchaser, setting forth the nature of said breach or default, Purchaser, shall have the right
to terminate the Contract without any further obligation to Contractor. Any such termination for default
shall not in any way operate to preclude Purchaser, from also pursuing all available remedies against
Contractor and its sureties for said breach or default.
d. Waiver of Remedies for any Breach In the event that Purchaser, elects to. waive its remedies for any
breach by Contractor of any covenant, term or condition of this Contract, such waiver by Purchaser,
shall not limit Purchaser, remedies for any succeeding breach of that or of any other term, covenant, or
condition of this Contract.
e, Termination for Default (Supplies and Service) If the Contractor fails to deliver supplies or to
perform the services within the time specified in this contract or any extension or if the Contractor fails
to comply with any other provisions of this contract, Purchaser, may terminate this contract for default.
Purchaser, shall terminate by delivering to the Contractor a Notice of Termination specifying the nature
of the default. The Contractor will only be paid the contract price for supplies delivered and accepted,
or services performed in accordance with the manner or performance set forth in this contract.
If, after termination for failure to fulfill contract obligations, it is determined that the Contractor was
not in default, the rights and obligations of the parties shall be the same as if the termination had been
issued for the convenience of the Recipient.
