CANCELING AN AGENCY CONTRACT July 2019

CANCELING AN AGENCY CONTRACT July 2019

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

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

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

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 Review your contract information - T&C Last Revised Date?

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

Cancellation of an Agency Contract Written Notification & Documentati on Required!

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.

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.

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.)

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

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

Email: [email protected] v Include: - Request to Cancel an Agency Contract Form - Cancellation letter/Signature - AAG acknowledgement of review REQUEST TO CANCEL AN AGENCY CONTRACT When an agency determines that they need to cancel an agency contract, they should review the terms and conditions and work with their AAG. If cancellation is because of cause, State Purchasingagents should refer the agency to the Deputy Director responsible for legal processes. Agency must send an email to [email protected] with the contract number in the subject and include: 1. This document 2. The cancellation letter sent vendor which must contain authorized agency signature; 3. An AAG memo/email acknowledging that s/he has reviewed the cancellation letter and that the cancelation was completed according to the terms and conditions of the contract; and 4. Proof that the letter was delivered to the vendor. This can be an automated email response received when the email is opened, a copy of a registered mail receipt, a FedEx notification of deliver, or a response from the vendor. State Entity Name of Individual Supplyin g Information Click here to enter text. Click here to enter text. INFORMATION ABOUT THE CONTRACT Contract # Click here to enter text. Vendor Click here to enter text. Beginning Date of Contract Click here to enter text. End Date of Contract Click here to enter text. Contract Spending Limit Click here to enter text. Av ail able Amount on Contract in FINET Click here to enter text. Click here to enter text. Bri ef Explanati on of Cancellation Date Requesting Contract to End Click here to enter text. INFORMATION ABOUT THE SOLICITATION (Filled in by the Utah Division of Purchasing) Solici tation Number Click here to enter text. Date of Award of Contract Click here to enter text. Notes: Click here to enter text. TO BE COMP LETED BY STATE PURCHASING I have reviewed the request and accompanying documentatio n and recommend moving forward with the agency’s request. Approval t o Mov e Fo rward: - Proof of Delivery of the Date:

Sample “Without Cause” Cancellation Letter DATE: TO: FROM: SUBJECT: 10 July 2019 Joe Smith, CEO, XYZ Company Jane Doe, [title], [agency] 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.

Cancellation of an Agency Contract - Agency completes documentation - Sends full packet to [email protected] - Numbered Amd #99 in Contract Tracking - Purchasing Tech emails to State Purchasing Agent Liaison - State Purchasing Agent reviews documentation

- Cancellation of an Agency State PurchasingContract Agent returns signed packet to [email protected] - 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