§ 200.340 - Termination.

§ 200.340 Termination.

(a) The Federal award may be terminated in whole part or in part its entirety as follows:

(1) By the Federal awarding agency or pass-through entity , if a non-Federal entity if the recipient or subrecipient fails to comply with the terms and conditions of a the Federal award;

(2) By the Federal awarding agency or pass-through entity , to the greatest extent authorized by law, if an award no longer effectuates the program goals or agency priorities;

(3) By the Federal awarding agency or pass-through entity

with the consent of the

non-Federal entity

recipient or subrecipient, in which case the two parties must agree upon the termination conditions

, including

. These conditions include the effective date and, in the case of partial termination, the portion to be terminated;

(

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3) By the

non-Federal entity

recipient or subrecipient upon sending

to

the Federal

awarding

agency or pass-through entity a written notification

setting forth

of the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal

awarding

agency or pass-through entity determines

in the case of partial termination

that the

reduced or modified

remaining portion of the Federal award

or subaward

will not accomplish the purposes for which the Federal award was made, the Federal

awarding

agency or pass-through entity may terminate the Federal award in its entirety; or

(

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4) By the Federal

awarding

agency or pass-through entity pursuant to

termination provisions included in the Federal award

the terms and conditions of the Federal award, including, to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.

(b) A The Federal awarding agency should agency or pass-through entity must clearly and unambiguously specify all termination provisions applicable to each Federal award, in applicable regulations or in the award, consistent with this sectionthe terms and conditions of the Federal award.

(c) When a the Federal awarding agency terminates a the Federal award prior to the end of the period of performance due to the non-Federal entityrecipient's material failure to comply with the Federal award terms and conditions of the Federal award, the Federal awarding agency must report the termination to the OMB-designated integrity and performance system accessible through SAM (currently FAPIIS).in SAM.gov. A Federal agency must use the Contractor Performance Assessment Reporting System (CPARS) to enter information in SAM.gov.

(1) The information required under paragraph (c) of this section is not to be reported to designated integrity and performance system until the non-Federal entity either—in SAM.gov until the recipient has either:

(i) Has exhausted Exhausted its opportunities to object or challenge the decision , (see § 200.342); or

(ii) Has not, within 30 calendar days after being notified of the termination, informed the Federal awarding agency that it intends to appeal the Federal awarding agency's decision to terminate.

(2) If a Federal awarding agency, after entering information into the designated integrity and performance system about a termination in SAM.gov, subsequently:

(i) Learns that any of that information is erroneous, the Federal awarding agency must correct the information in the system within three business days;

(ii) Obtains an update to that information that could be helpful to other Federal awarding agencies, the Federal awarding agency is strongly encouraged to amend the information in the system to incorporate the update in a timely way.

(3) The Federal awarding agencies, agency must not post any information that will be made publicly available in the non-public segment of designated integrity and performance system SAM.gov that is covered by a disclosure exemption under the Freedom of Information Act (FOIA). If the non-Federal entity When the recipient asserts within seven calendar days to the Federal awarding agency who which posted the information , that a disclosure exemption under FOIA covers some of the information made publicly available is covered by a disclosure exemption under the Freedom of Information Act, the Federal awarding agency who that posted the information must remove the posting within seven calendar days of receiving the assertion. Prior to Before reposting the releasable information, the Federal agency must resolve the issue in accordance with the agency's Freedom of Information Act FOIA procedures.

(d) When a the Federal award is terminated in part or partially terminatedits entirety, both the Federal awarding agency or pass-through entity and the non-Federal entity recipient or subrecipient remain responsible for compliance with the requirements in §§ 200.344 and 200.345.