Does your subcontract with the company stipulate that it is a 3 year
contract?  Or is it a one year with options to renew?  If it's the latter,
you just opt not to renew.  If it's the former, you may have to prove that
the sub is incapable of completing the work as stated in the statement of
work.  This is tough and asking for a lawsuit.  All the subs I wrote were
for a set period of performance (or defined deliverables) plus options at
our discretion.  This gave us a weasel clause to get out of a bad situation
when we needed to.

Greg Schmidt

PS  it's entirely too late and way too long a day.  I hope this made sense.

----- Original Message -----
From: "Laurie Chamness" <xxxxxx@COFC.EDU>
To: <xxxxxx@HRINET.ORG>
Sent: Wednesday, February 16, 2000 2:25 PM
Subject: Declining to issue a subcontract renewal

> Do any of you have experience in declining to issue a subcontract
> renewal award to a private company on a multi-year federal grant? If so,
> what justification to the private company, if any, is required on our
> part, in declining to issue the renewal? What are the possible legal
> ramifications regarding the private company's rights?
>
> We have a three year NASA grant on which we have issued a subcontract to
> a private company for the past 2 years. The relationship between our
> institution and the private company has deteriorated to the point where
> the PI would prefer not to issue the subcontract to the private company
> for Year 3 of the grant. This private company was named in the original
> grant proposal to NASA as a subcontractor for the 3 year grant period.
> Our PI does not want to hire the private company for Year 3, but he also
> wants to avoid the conflict of having to provide a legal justification
> to the company for not renewing the subcontract.
>
> Laurie
>
> --
>
> Laurie P. Chamness                    Phone:  (843) 953-4973
> Assistant Director                        Fax:  (843) 953-6577
> Research & Grants Admin          E-mail:  xxxxxx@cofc.edu
> College of Charleston
> 66 George Street
> Charleston, SC  29424
>
>
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