If a contract provides for its termination on notice by the Postal Service, the Postal Service may terminate the contract by sending the supplier a written notice consistent with the contract’s provisions for termination on notice. A contract containing a termination on notice clause may also contain a clause allowing for termination for default and providing less notice than that in the termination on notice clause. In such cases, if the contract is terminated for default or for cause and it is subsequently established that the termination was improper, the supplier’s damages will be limited to any amount to which it would have been entitled had the termination for default or cause been a termination on notice.
If the supplier can establish that its failure to perform arose out of causes beyond its control and without its fault or negligence, a termination for default will be deemed a termination for the convenience of the Postal Service, and the rights and obligations of the parties will be governed accordingly.
The CO may terminate contracts only by written notice to the supplier. In terminating a fixed-price contract for default for a cause other than failure to make timely delivery, the termination notice discussed here must be preceded by the notice or notices discussed. Notice must be by:
The notice must state:
When the termination notice is sent to the supplier, the CO must simultaneously send a copy to the applicable accounting service center and to any known assignee, guarantor, or surety of the supplier.
