Section 3052.249-90 - Contract termination (USCG)As prescribed in the USCG guidance at (HSAR) 48 CFR 3049.9002 , insert the following clause:
Contract Termination (USCG) (MAR 2023)
(a) This contract is subject to Section 3523 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232), 14 U.S.C. 1155 , pertaining to contract terminations for the United States Coast Guard (USCG).(b)Notification. As required by 14 U.S.C. 1155(b) , before terminating a contract with a total value of more than $1,000,000, the Commandant of the Coast Guard shall notify the contractor and the contractor shall be required to maintain all work product related to the contract until the earlier of- (1) not less than 1 year after the date of the notification; or(2) the date the Commandant notifies the vendor that maintenance of such work product is no longer required.(c)Work Product Defined. In this clause the term "work product"- (1) means tangible and intangible items and information produced or possessed as a result of a contract referred to in subsection (b); and(2) includes- (i) any completed end items;(ii) any uncompleted end items; and(iii) any property in the Contractor's possession in which the United States Government has an interest.(d)Penalty. A Contractor that fails to maintain work product as required under subsection (b) is liable to the United States for a civil penalty of not more than $25,000 for each day on which such work product is unavailable.(e) The Contractor shall insert the substance of this clause in contracts and subcontracts, including contracts for commercial items, with a total value of more than $1,000,000.(End of clause)
88 FR 9772 , Feb. 15, 2023