Office of Procurement, Acquisition and Logistics (OPAL)

Cancelling Your FSS Contract

In accordance with clause 552.238-73, Cancellation, both the government and the contractor has the right to cancel the awarded FSS contract in whole or in part by providing 30 days written notice with no obligation to the other party.

If the government elects to cancel the contract, the contractor will receive a SF-30 modification form detailing the rationale for the cancellation and the effective date of the action.  The government may reverse its decision to cancel the contract if the contractor provides written justification and/or the required deliverables within the 30 day notification timeframe.

Reasons to Cancel a Contract

Government

There are several reasons why the government may elect to cancel a contract, including:

• Violations of contract terms and conditions
• Non-compliance with contract deliverables, including failure to
  • Report sales or repeated late reporting of sales;
  • Remit IFF;
  • Remit annual rebate payments
  • Maintain an updated Authorized Paper Price List;
  • Maintain a GSA Advantage! price list;
  • Maintain or submit an approved subcontracting plan;
  • Submit required eSRS filings;
  • Submit required insurance certificates
• The government no longer has a need for the products/services offered
• Low annual sales (not meeting the requirements of I-FSS-639, Contract Sales Criteria)

Note:  Contractors may avoid cancellation for non-compliance if they submit the required deliverables within the 30 day notification timeframe.

Contractor

Contractors may also elect to cancel their awarded FSS contract, such as:

• Change in corporate structure (company bought or sold);
• Change in business direction; and
• Low annual sales (maintaining the contract is not profitable for your firm)

Note:  Cancellations are effective 30 calendar days after the other party receives the written notice of cancellation.

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