Section NR 120.27 - Suspension or termination of grant(1) SUSPENSION OF GRANTS.(a)Liability. The department may suspend state liability for work done under a grant after notification is given to the grantee in accordance with the provisions of this subsection. Suspension of state liability under a grant shall be accomplished by the issuance of a stop-work order.(b)Stop-work order issuance.1. The department may issue a stop-work order if there is a breach of the grant agreement.2. Prior to the issuance of a stop-work order, the department shall meet with the grantee to present the facts supporting a decision to issue a stop-work order.3. After discussion of the department's proposed action with the grantee, the department may issue a written order to the grantee, sent by certified mail, return receipt requested, requiring the grantee to stop all, or any part of the project work for a period of not more than 45 days after the order is delivered to the grantee, and for any extended period to which the parties may agree.(c)Stop-work order components. A stop-work order shall contain all of the following: 1. A description of the work to be suspended.2. Instructions for how the grantee may acquire materials or services.3. Guidance for action to be taken on contracts.4. Other suggestions to the grantee for minimizing costs.(d)Suspension period.1. Upon receipt of a stop-work order, the grantee shall comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to work covered by the stop-work order during the period of work stoppage.2. Within the suspension period, the department shall do one of the following: a. Cancel the stop-work order, in full or in part.b. Terminate grant assistance for the work covered by the stop-work order under sub. (2).c. Authorize resumption of work.(e)Stop-work order cancellation or expiration. If a stop-work order is canceled or expires, the grantee shall promptly resume the previously suspended work. An equitable adjustment may be made to the grant period, the grant amount or any combination of these items. The grant award may be amended accordingly, if all of the following conditions are met:1. The stop-work order results in an increase in the time required for completion or an increase in the grantee's cost properly allocable to the performance of any part of the project.2. The grantee asserts a written claim for an adjustment within 60 days of cancellation of a stop-work order or authorization to resume work.(f)Ineligible costs during suspension period. Costs incurred by the grantee or its contractors, subcontractors or representatives, after a stop-work order is issued by the department, which relate to the project work suspended by the order and which are not authorized by this section or specifically authorized in writing by the department, are not eligible for reimbursement.(2) TERMINATION OF GRANTS. (a) A grant may be terminated in whole or in part by the department. Grants may be terminated in accordance with the procedures of this subsection.(b) The parties to a grant agreement may enter into an agreement to terminate the grant at any time. The agreement shall establish the effective date of termination of the grant, the basis for settlement of grant termination costs and the amount and date of payment of any money due to either party.(c) A grantee may not unilaterally terminate project work for which a grant has been awarded except for good cause. The grantee shall notify the department in writing within 30 days of any complete or partial termination of the project work. If the department determines that there is good cause for the termination of all or any portion of a project for which a grant has been awarded, the department may enter into a termination agreement or unilaterally terminate the grant pursuant to par. (d). The grant termination becomes effective on the date the grantee ceases project work. If the department determines that a grantee has ceased work on the project without good cause, the department may unilaterally terminate the grant pursuant to par. (d) or annul the grant pursuant to par. (e).(d) Grants may be terminated by the department in accordance with the following procedure: 1. The department shall give 10 days written notice to the grantee of its intent to terminate a grant in whole or in part. Notice shall be served on the grantee personally or by mail, certified mail, return receipt requested.2. The department shall consult with the grantee prior to termination. Any notice of termination shall be in writing and state the reasons for terminating the grant. Notices of termination shall be served on the grantee personally or by mail, certified mail, return receipt requested.(e) The department may annul a grant if any of the following conditions apply:1. There has been substantial nonperformance of the project work by the grantee without good cause.2. There is substantial evidence the grant was obtained by fraud.3. There is substantial evidence of gross abuse or corrupt practices in the administration of the grant or project.4. The grantee has not met the conditions in the grant.(f) Upon termination, the grantee shall refund or credit to the department that portion of the grant funds paid or owed to the grantee and allocable to the terminated project work, except an amount as may be required to meet commitments which became enforceable prior to the termination. The grantee may not make any new commitments without department approval. The grantee shall reduce the amount of outstanding commitments insofar as possible and report to the department the uncommitted balance of funds awarded under the grant.(3) TERMINATION SETTLEMENT COSTS. (a) The reasonable costs resulting from a termination order, including a previously issued stop-work order on that project work or grant, shall be eligible in negotiating a termination settlement.(b) The department shall negotiate appropriate termination settlement costs with the grantee. The department shall pay reasonable settlement costs.(4) RESPONSIBILITIES OF GOVERNMENTAL UNITS. Suspension or termination of a grant or portion of a grant under this section may not relieve the grantee of its responsibilities under ss. NR 120.03 and 120.05.Wis. Admin. Code Department of Natural Resources NR 120.27
CR 00-028: cr. Register September 2002 No. 561, eff. 10-1-02.