Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.49.402-4 Procedure in lieu of termination for default

(a) Permit the contractor, the surety, or the guarantor, to continue performance of the contract under a revised delivery schedule.

(b) Permit the contractor to continue performance of the contract by means of a subcontract or other business arrangement with an acceptable third party, provided the rights of the Government are adequately preserved.

(c) If the requirement for the supplies and services in the contract no longer exists, and the contractor is not liable to the Government for damages as provided in 49.402–7, execute a no-cost termination settlement agreement using the formats in 49.603–6 and 49.603–7 as a guide.