FAR 49.601-1—Electronic notice.
Plain-English Summary
FAR 49.601-1 covers how a contracting officer may give expedited notice of termination by electronic means, when the notice must require the contractor to confirm receipt, and what the contracting officer must do if confirmation is not received promptly. It also explains when a separate letter notice under FAR 49.601-2 is still required and when it is not needed because the electronic notice already contains all of the required content and receipt has been confirmed. The section then provides suggested model language for two situations: complete termination for convenience and partial termination for convenience, both aimed primarily at supply contracts but adaptable to other contract types if appropriately modified. In practice, this provision is about speed and proof: it lets the Government quickly stop work and protect its interests while still ensuring the contractor receives clear, documented notice and instructions. The model notices also tell the contractor to stop work immediately, terminate subcontracts, place no further orders, and issue similar instructions to subcontractors and suppliers, which helps prevent avoidable costs after termination. For contracting officers, the section is a practical tool for rapid communication, but it must be used carefully to ensure the notice is complete, receipt is confirmed, and follow-on written notice is sent when required.
Key Rules
Electronic notice is allowed
The contracting officer may use electronic means to provide expedited termination notice. The electronic notice must include a requirement that the contractor confirm receipt, so the Government has evidence the notice was actually received.
Prompt confirmation matters
If the contractor does not promptly confirm receipt, the contracting officer must resend the notice electronically and also expedite the letter notice described in FAR 49.601-2. This protects the Government from disputes over whether termination notice was effectively delivered.
Letter notice may be unnecessary
If the contractor confirms receipt of the electronic notice and that notice includes all of the content required by FAR 49.601-2, the contracting officer does not need to send the separate letter notice. The electronic notice must be complete, not just a short alert that termination is coming.
Complete termination model
For a complete termination for convenience of a supply contract, the section provides suggested electronic notice language. The notice directs the contractor to stop all work, terminate subcontracts, place no further orders, and follow any special instructions about retaining work-in-process or materials for its own account.
Partial termination model
For a partial termination for convenience of a supply contract, the section provides a separate suggested notice. It tells the contractor which items are removed from the contract, reduces the delivery requirements accordingly, and again instructs the contractor to stop work on the terminated portion and notify subcontractors and suppliers.
Model language is adaptable
The sample notices are suggested forms, not mandatory text. They may be modified for other than supply contracts, but the contracting officer must tailor them to the contract type, the termination clause, and the specific facts of the termination.
Responsibilities
Contracting Officer
May issue expedited termination notice by electronic means, require confirmation of receipt, resend the notice if confirmation is not prompt, and send the FAR 49.601-2 letter notice when needed. The contracting officer must also ensure the notice contains the required termination information and is properly tailored for complete or partial termination.
Contractor
Must promptly confirm receipt of the electronic termination notice and, once notified, immediately stop work as directed, terminate affected subcontracts, place no further orders except as allowed, and pass similar instructions to subcontractors and suppliers.
Subcontractors and Suppliers
Are not direct recipients of the FAR notice requirement, but they must follow the contractor’s instructions once the contractor relays the termination direction. Their work and ordering activity should stop to the extent affected by the termination.
Agency/Contracting Activity
Must support use of reliable electronic communication methods and ensure termination notices are documented and issued in a way that protects the Government’s rights and creates a clear record of notice and receipt.
Practical Implications
This section is designed to speed up termination actions, so contracting officers should have a reliable electronic delivery method and a way to document receipt before relying on electronic notice alone.
A common pitfall is sending a short email that says the contract is terminated but omits the detailed instructions required by FAR 49.601-2; if the notice is incomplete, the separate letter notice may still be required.
Another risk is assuming an email was received without confirmation. If the contractor does not promptly confirm receipt, the contracting officer must resend electronically and expedite the formal letter notice.
Contractors should treat an electronic termination notice as immediately serious even if a paper letter has not arrived, because the notice may be effective once properly sent and confirmed.
The sample language is especially useful for supply contracts, but for service, research, or other non-supply contracts, the contracting officer must modify the notice carefully so the stop-work and subcontract instructions fit the contract’s actual performance structure.
Official Regulatory Text
The contracting officer may provide expedited notice of termination by electronic means that includes a requirement for the contractor to confirm receipt. If the contractor does not confirm receipt promptly, the contracting officer shall resend the notice electronically, and expedite the letter notice described in 49.601-2 . If confirmation of the electronic notice is received, and the electronic notice includes all content in 49.601-2 , the contracting officer need not send the letter notice described in 49.601-2 . (a) Complete termination: The following electronic notice is suggested for use if a supply contract is being completely terminated for convenience. If appropriately modified, the notice may be used for other than supply contracts. Date ____________ XYZ Corporation New York, NY 12345 Contract No. ___________________ is completely terminated under clause ______, effective __________________ [ insert "immediately, ( today’s date )" or "on , 20," or "as soon as you have delivered, including prior deliveries, the following items:" ( list )]. Immediately stop all work, terminate subcontracts, and place no further orders except to the extent [ insert if applicable "necessary to complete items not terminated or"] that you or a subcontractor wish to retain and continue for your own account any work-in-process or other materials. Provide by electronic means similar instructions to all subcontractors and suppliers. Detailed instructions follow. _______________________________________________________________________________ (Contracting Officer) (b) Partial termination: The following electronic notice is suggested for use if a supply contract is being partially terminated for convenience. If appropriately modified, the notice may be used for other than supply contracts. Date ____________ XYZ Corporation New York, NY 12345 Contract No. is partially terminated under clause ___________, effective ____________ [ insert "immediately, ( today’s date )" or "on ____, 20"]. Reduce items to be delivered as follows: [ insert instructions ]. Immediately stop all work, terminate subcontracts, and place no further orders except as necessary to perform the portion not terminated or that you or a subcontractor wish to retain and continue for your account any work-in-process or other materials. Provide by electronic means similar instructions to all subcontractors and suppliers. Detailed instructions follow. _____________________________________________________________________________ (Contracting Officer)