LAC 67:VII.1739. Contract Closeout

A. Each contract shall be closed out as promptly as is feasible after termination. In closing out contracts, the following shall be observed. 1. Upon request LRS shall promptly pay the contractor for any allowable reimbursable costs not covered by previous payments. 2. The contractor shall immediately refund any unobligated balance of cash advance to the grantee. 3. The contractor shall submit within 30 days of the date of termination, any financial, performance, and other reports required by the terms of the contract. B. The closeout of a contract does not affect the retention period for, or LRS' rights of access to contract records. The closeout of a contract does not affect the responsibilities with respect to property under §1723, or with respect to any program income for which the grantee is still accountable under §1721. C. Violation of Terms. When a contractor has materially failed to comply with the terms of a contract, LRS may suspend the contract in whole or in part. The notice of suspension will state the reasons for the suspension, any corrective action required, and the effective date. Suspensions shall remain in effect until the contractor has taken corrective action satisfactory to LRS or given evidence satisfactory to LRS that such corrective action will be taken or until LRS terminates the contract. New obligations incurred by the contractor during the suspension period will not be allowed unless LRS expressly authorizes them in the notice of suspension or an amendment to it. Necessary and otherwise allowable costs which the contractor could not reasonably avoid during the suspension period will be allowed if they result from obligations properly incurred by the contractor before the effective date of the suspension and not in anticipation of suspension or termination. D. Termination for Cause. LRS may terminate any contract in whole or in part, at any time before the date of expiration, whenever LRS determines that the contractor has materially failed to comply with the terms of the contract. LRS shall notify the contractor in writing of the determination and the reasons for the termination together with the effective date. (All notification for termination shall be given 30 days prior to the effective termination date.) E. Termination on Other Grounds. Contracts may also be terminated in whole or in part only as follows: 1. by LRS with the consent of the contractor, in which case the two parties shall agree upon the termination conditions, including the effective date and in the case of partial terminations, the portion to be terminated; or 2. by the contractor, upon written notification to LRS, setting forth the reasons for such termination, the effective date, and in the case of partial terminations, the portion to be terminated. F. Termination Settlements. When a contract is terminated, the contractor shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. LRS will allow full credit to the contractor for the federal share of the non-cancelable obligations properly incurred by the grantee prior to termination.