Code of Massachusetts Regulations
815 CMR - COMPTROLLER'S DIVISION
Title 815 CMR 3.00 - Ready Payment System
Section 3.05 - Termination of the Use of the Ready Payment System for Contract Payments

Universal Citation: 815 MA Code of Regs 815.3

Current through Register 1531, September 27, 2024

The termination of the use of the Ready Payment System for Contract Payments may be invoked in rare and severe circumstances which would normally warrant the Department's termination of the Contract with the Contractor. The Department may terminate the use of the Ready Payment System for Contract payments regardless of whether or not the Department chooses to terminate the Contract.

(1) Grounds for Termination. The Department may terminate the use of the Ready Payment System for Contract payments whenever:

(a) the Contractor has demonstrated bad faith in Contract performance or an intentional disregard of the Contractor's duties or responsibilities under a Contract including, but not limited to, fraud, gross negligence, reckless or intentional misconduct, willful misrepresentations or any unlawful act in the performance, billing, reporting or other requirements of the Contract;

(b) the use of the Ready Payment System for Contract payments has been suspended by the Department pursuant to 815 CMR 3.04, and the Contractor has failed or refused to cure Contract deficiencies for a period of 60 calendar days, or such other period of time as specified in the Contract;

(c) the Contractor has been subject to continual or frequent suspensions from the use of the Ready Payment System for Contract deficiencies during the Contract period, pursuant to 815 CMR 3.04, and the Department determines that, due to the Contractor's continuing intentional disregard of its duties or responsibilities under the Contract, the Ready Payment System is no longer an appropriate payment mechanism for Contract payments under the Contract;

(2) Written Notice of Termination. A Department must notify a Contractor in writing of the termination of the use of the Ready Payment System for Contract payments. The written notification must include the grounds for termination, as described in 815 CMR 3.05(1), and the effective date of the termination. A copy of the written notice of termination shall also be sent to the Department's Secretariat and the Office of the Comptroller. The Department should also send a copy of the notice of termination to any other Department or Secretariat that the Department has reason to know is also contracting with the Contractor.

(3) Payments During Period of Termination. Provided the Contract has not been terminated by the Department, the Department may continue to make Contract payments through a Payment Voucher mechanism during the period of termination.

(4) Scope of Termination. The termination of the use of the Ready Payment System for Contract payments shall be limited to the Contract giving rise to the termination, unless a Department Head or Secretary determines that the egregious nature of the grounds for the termination warrant an extension of this termination to other contracts that the Contractor has with the Department or other Departments within the Secretariat. The Department Head or the Secretary shall provide written notice of this determination to the relevant contracting Departments. The contracting Departments shall provide the Contractor with written notice, in accordance with 815 CMR 3.05(2), of the extension of the termination of the use of the Ready Payment System for each relevant contract within the Department.

(5) Two Year Period of Termination from Participation. The termination of the use of the Ready Payment System for Contract payments shall continue for two years from the effective date of the termination, pursuant to M.G.L. c. 29, § 23A. At the end of the two year termination period a Contractor may request the use of the Ready Payment System for Contract payments pursuant to the provisions of 815 CMR 3.03.

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