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Canceling AN Agency Contract

Learn about reasons & procedures for canceling agency contracts, notification requirements, and common terms and conditions. Get insights on termination with or without cause, mutual agreement, and compliance with updated provisions.

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Canceling AN Agency Contract

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  1. Canceling AN Agency Contract July 2019

  2. Under what conditions do Terms & Conditions allow the Cancellation of an Agency Contract? - Cause - Without Cause (Convenience) - Mutual Agreement - Nonapproriation of Funds, reduction in funds, & changes in law

  3. Terms & Conditions Reasons for Cancellation of an Agency Contract Version Revised October 29, 2019

  4. What is one requirement in the T&C that all 4 cancellations have in common? Notification and Documentation

  5. Review the Contract’s T&C • - Utah’s Standard T&C have been revised throughout the years • - Your contract may have different T&C and different time requirements for termination than are found in this presentation • Refer to the T&C on your contract for more information Review your contract…… T&C Last Revised Date?

  6. Reason for Cancellation Version Revised October 29, 2019 Time requirement Documentation required

  7. Cancellation of an Agency Contract Written Notification & Documentation Required!

  8. Cancellation of an Agency Contract • An agency’s decision as to how to terminate, timing, and the overall approach are business decisions of the agency and their legal counsel.

  9. Cancellation of an Agency Contract • The Utah Division of Purchasing does not have authority to determine if the contract cancellation is legal, appropriate, or approved. The Division is only making sure the documentation required is in hand before proceeding with the cancellation.

  10. Cancellation of an Agency Contract • The State Purchasing agent is checking these items are included: • - Request to Cancel an Agency Contract Form • - Cancellation letter/Signature • - AAG acknowledgement of review • - Proof of Delivery (Google Read Receipt, FedEx tracking documentation, USPS Certified Mail delivery documentation, etc.)

  11. When Cancellation if for Mutual Agreement • How? • By Contract Amendment • Why? • To protect agency and contractor. All parties are displaying agreement.

  12. Cancellation for - Cause - Without Cause (Convenience) - Nonapproriation of Funds, etc • How? • FINET: Request to Cancel an Agency Contract Form • Where? • Ask your State Purchasing Liaison for a copy of the Form

  13. Email: purchasingcontracts@utah.gov Include: - Request to Cancel an Agency Contract Form - Cancellation letter/Signature - AAG acknowledgement of review - Proof of Delivery of the letter

  14. Sample “Without Cause” Cancellation Letter DATE: 10 July 2019 TO: Joe Smith, CEO, XYZ Company FROM: Jane Doe, [title], [agency] SUBJECT: Contract 136155 Termination Mr. Joe Smith, The [Department and Division holding the contract] is terminating the State of Utah Contract, 136155 with XYZ Company for translation services. This agreement is canceled without cause pursuant to Attachment A of the Contract 136155, State of Utah Standard Terms and Conditions, Paragraph [insert the paragraph number] which reads: [As the terms and condition (T&C) have been revised over the years, it is important that this paragraph be copied from the contract in question.] This decision to terminate this contract is not meant to reflect negatively toward the services that XYZ Company has provided. The Department will terminate the agreement on August 15, 2019. Thank you for your coordination throughout the agreement. Thank you, Jane Doe [title/agency] Note: The above is a sample only. Work with your assistant attorney general to determine what needs to be included in your termination letter and who should sign it.

  15. Cancellation of an Agency Contract • Agency completes documentation • Sends full packet to purchasingcontracts@Utah.gov • Numbered Amd #99 in Contract Tracking • Purchasing Tech emails to State Purchasing Agent Liaison • State Purchasing Agent reviews documentation

  16. Cancellation of an Agency Contract • State Purchasing Agent returns signed packet to purchasingcontracts@Utah.gov • Purchasing Technician • Returns documentation to Agent if the form is missing • If the form with signature is included, the Tech will: • Enters date changes in FINET • Email the signed packet to agency • Digitally files the Amd #99

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