Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.2432.704-70 Incrementally funded fixed-price contracts

(a) Upon receipt of the contractor's notice under paragraph (c) of the clause at 2452.232–72, Limitation of Government's Obligation, the contracting officer shall promptly provide written notice to the contractor that the Government is—

(b) Upon learning that the contract will receive no further funds, the contracting officer shall promptly give the contractor written notice of the Government's decision and terminate the affected CLINs or contract, as applicable, for the convenience of the Government.

(c) The contracting officer shall ensure that, in accordance with paragraph (b) of the clause at 2452.232–72, “Limitation of Government's obligation,” sufficient funds are allotted to the contract to cover the total amount payable to the contractor in the event of termination for the convenience of the Government.