FAR 49.607—Delinquency notices.
Plain-English Summary
FAR 49.607 provides standard notice formats for dealing with contractor delinquency before a default termination, specifically the Cure Notice and the Show Cause Notice. It explains when each notice may be used, how they relate to the default-termination procedures in FAR 49.402-3, and the requirement that notices be sent with proof of delivery requested. The section also cross-references stop-work orders in subpart 42.13, signaling that delinquency issues may overlap with other contract administration remedies. In practice, this section helps contracting officers preserve the Government’s rights, create a clear written record, and give the contractor a fair opportunity to correct performance problems or explain excusable delay before termination for default is pursued. For contractors, it is an early warning that performance is in jeopardy and that silence or inadequate response can be used against them in a later default decision.
Key Rules
Use standard notice formats
The notice formats in this section may be used to satisfy the delinquency-notice requirements of FAR 49.402-3. They are model language, but the contracting officer must tailor the notice to the facts of the contract and the specific performance failure.
Send with proof of delivery
All delinquency notices must be sent with proof of delivery requested. This protects the Government by documenting that the contractor actually received the notice and when receipt occurred, which matters for cure and response deadlines.
Cure notice requires time remaining
A Cure Notice is required by the Default clause when termination may occur before the delivery date, but only if enough time remains in the contract schedule to allow a realistic cure period. If at least 10 days do not remain, the contracting officer should not issue a Cure Notice.
Cure notice gives chance to fix
The Cure Notice tells the contractor that a specified failure is endangering performance and gives at least 10 days after receipt to cure the condition, or a longer period if the contracting officer considers it reasonably necessary. Failure to cure may lead to default termination.
Show cause notice after delivery time
If there is not enough time left for a realistic cure period, the contracting officer may use a Show Cause Notice, typically sent immediately after the delivery period expires. It informs the contractor that default termination is being considered and asks for written facts showing whether the failure was beyond the contractor’s control and without fault or negligence.
Contractor response is critical
The Show Cause Notice gives the contractor 10 days after receipt to submit excuses or other facts to the contracting officer. If the contractor does not respond, that silence may be treated as an admission that no excuse exists.
No waiver by assistance or acceptance
The Show Cause Notice states that any Government assistance or acceptance of delinquent goods or services is only to mitigate damages and does not waive the Government’s rights or condone the delinquency. This protects the Government from arguments that it accepted late performance and gave up its default rights.
Responsibilities
Contracting Officer
Determine whether the contract still has enough delivery time to support a realistic cure period, choose the correct notice type, tailor the notice to the contractor’s actual failure, send it with proof of delivery requested, and evaluate any contractor response before deciding whether to terminate for default.
Contractor
Review the notice immediately, cure the cited performance problem within the stated period if a Cure Notice is received, or submit written facts and excuses within 10 days if a Show Cause Notice is received. The contractor should document any excusable causes beyond its control and without fault or negligence.
Agency/Government
Use the notice process to preserve contractual rights, maintain a clear record of delinquency and response, and avoid actions that could unintentionally waive default rights. If assistance is provided or late goods/services are accepted, the agency must treat those actions as damage-mitigation measures only unless it intends to waive rights.
Practical Implications
This section is a key procedural safeguard before default termination, so getting the notice type wrong can weaken the Government’s case or create avoidable disputes.
The timing rules matter: a Cure Notice is inappropriate if there is not enough time left for a real 10-day cure period, and a Show Cause Notice should be sent promptly after the delivery deadline passes.
Contracting officers should make sure the notice clearly identifies the specific failure, because vague delinquency language can make it harder to defend a later termination decision.
Contractors should not ignore these notices; failure to respond can be treated as an admission that no excuse exists, which can seriously damage any later defense.
Any Government help, discussions, or acceptance of late performance should be carefully documented so it is clear the Government is not waiving its rights under the contract.
Official Regulatory Text
The formats of the delinquency notices in this section may be used to satisfy the requirements of 49.402-3 . All notices will be sent with proof of delivery requested. (See subpart 42.13 for stop-work orders.) (a) Cure notice. If a contract is to be terminated for default before the delivery date, a "Cure Notice" is required by the Default clause. Before using this notice, it must be ascertained that an amount of time equal to or greater than the period of "cure" remains in the contract delivery schedule or any extension to it. If the time remaining in the contract delivery schedule is not sufficient to permit a realistic "cure" period of 10 days or more, the "Cure Notice" should not be issued. The "Cure Notice" may be in the following format: Cure Notice You are notified that the Government considers your ____ [ specify the contractor’s failure or failures ] a condition that is endangering performance of the contract. Therefore, unless this condition is cured within 10 days after receipt of this notice [ or insert any longer time that the Contracting Officer may consider reasonably necessary ], the Government may terminate for default under the terms and conditions of the _______ [ insert clause title ] clause of this contract. (End of notice) (b) Show cause notice . If the time remaining in the contract delivery schedule is not sufficient to permit a realistic "cure" period of 10 days or more, the following "Show Cause Notice" may be used. It should be sent immediately upon expiration of the delivery period. Show Cause Notice Since you have failed to ____ [ insert "perform Contract No. ___ within the time required by its terms," or "cure the conditions endangering performance under Contract No _____ as described to you in the Government’s letter of _____ (date)"], the Government is considering terminating the contract under the provisions for default of this contract. Pending a final decision in this matter, it will be necessary to determine whether your failure to perform arose from causes beyond your control and without fault or negligence on your part. Accordingly, you are given the opportunity to present, in writing, any facts bearing on the question to ____ [ insert the name and complete address of the contracting officer ], within 10 days after receipt of this notice. Your failure to present any excuses within this time may be considered as an admission that none exist. Your attention is invited to the respective rights of the Contractor and the Government and the liabilities that may be invoked if a decision is made to terminate for default. Any assistance given to you on this contract or any acceptance by the Government of delinquent goods or services will be solely for the purpose of mitigating damages, and it is not the intention of the Government to condone any delinquency or to waive any rights the Government has under the contract. (End of notice)