Authority/Reference(s) State of Texas Procurement and Contract Management Guide; Texas Government Code §552.374
Revision Date December 15, 2020

Policy

The Contract Term is the period of time between the effective or start date and the end date as indicated on the contract. All contracts must have a start and end date.
Contract staff must evaluate the contractor’s performance, regardless of how the contract ends or terminates.
DFPS contracts can terminate three ways:

  • End of Contract Term; 
  • Termination for Convenience; or
  • Termination for Cause.

End of Contract Term

Most contracts terminate at the end of the contract term and require no termination notice or action in CAPPS FIN. Contract staff must complete closeout activities as provided for in Contract Closeout.

Termination for Cause

As provided for in all version of the DFPS Uniform Terms and Conditions (UTCs), DFPS may terminate a contract for cause. Contract managers should coordinate with DFPS Legal Contracts and must have documentation of performance and noncompliance issues to establish termination for cause.
The following are some examples of termination for cause:
When the contractor:

  • Is unable to perform the contracted services or deliver the goods;
  • Is unable to make progress;
  • Is unable to comply with technical assistance provided by DFPS or Corrective Action Plan (CAP) to remedy an issue;
  • Has breached the contract in any way;
  • Submits falsified documents;
  • Submits fraudulent billings;
  • Fails to meet or does not disclose that no longer meets minimum qualifications; or
  • Fails to disclose contracting information when required.

DFPS is not liable for payments after the date of termination and may recoup prior payments issued. The contractor may be liable to DFPS for costs associated with procuring a substitute contractor to perform the contract or litigation costs related to the contractor’s failure to provide services or goods.

Termination for Convenience

As provided for in all version of the DFPS Uniform Terms and Conditions (UTCs), DFPS may terminate a contract for convenience. Some examples of Termination for Convenience are:

  • DFPS has determined it is in the best interest of the State of Texas;
  • DFPS has determined that it no longer needs a service or is not utilizing a contractor;
  • The Contractor has requested that the contract be terminated;
  • The Contractor experienced a life event or change in circumstances and is no longer able to provide the contract’s services or goods;
  • Mutual Agreement of the Parties; or
  • Funding Availability in UTCs.