Sec. 605. Managing termination liability
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/bill/113/hr/2616/ih/section-605·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Administrator may not reserve funds or require the reservation of funds for potential termination liability with respect to a covered program. Funds that have been reserved before the date of enactment of this Act for potential termination liability shall be promptly used to make maximum progress in meeting the established goals and milestones of the covered program. The Administrator may not initiate the termination for the convenience of the Government of a contract on a covered program unless— the termination of such contract or program is explicitly provided for by a law enacted after the date of enactment of this Act; and either— the Administrator has provided a supplemental appropriation request under subsection
(c)with respect to associated termination liability costs; or sufficient funds are available to cover such termination liability costs in the appropriations account that is funding the prime contract being terminated. If sufficient appropriations are not available to cover termination liability costs in the appropriations account that is funding the prime contract being terminated, the Administrator shall provide to Congress a supplemental appropriation request to cover such termination liability costs. Such request shall be provided not later than 120 days in advance of the contract termination settlement for the covered program. It is the intent of Congress to provide such additional appropriations as may be necessary to provide for termination liability payments on contracts for covered programs. Not later than 6 months after the date of enactment of this Act, and every 6 months thereafter for the duration of the prime contracts for the covered programs, the Administrator shall transmit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report that— estimates termination liability costs for each of the prime contracts on covered programs; and explains the basis on which the estimates were determined.