delete PART 649—TERMINATION OF CONTRACTS
This regulation governs termination of contracts with debarred or suspended contractors, requiring multiple layers of approval, specifying termination for default only when debarment relates to contract performance, and outlining factors for termination for convenience. It also mandates legal review of settlements and reporting of fraud.
The regulation adds bureaucratic overhead and delays that increase taxpayer costs and keep risky contractors on the job longer. Its rigid default termination rule restricts the government's ability to remove debarred contractors who pose risks even if unrelated to specific contract performance. These objectives can be achieved more efficiently through agency guidance rather than codified regulation.