Rhode Island Code of Regulations
Title 220 - Department of Administration
Chapter 30 - Purchases
Subchapter 00 - N/A
Part 8 - Contracts (220-RICR-30-00-8)
Section 220-RICR-30-00-8.8 - Termination and Cancellation Of Contract

Universal Citation: 220 RI Code of Rules 30 00 8.8

Current through September 18, 2024

A. If required bidder certifications are determined to be invalid, the Purchasing Agent shall declare the purchase order void.

B. Notice of termination by either party shall be submitted in writing to the other party in accordance with the termination clause of the contract.

C. Cancellation of a Contract by the State

1. Cancellations of Purchase Order Contracts or Master Pricing Agreements shall require the signature of the Purchasing Agent or his designee.

2. A contract may be cancelled or annulled at the contractor's expense upon determination by the Purchasing agent that a condition of nonperformance exists.

3. "Nonperformance" shall mean lack of compliance with the contract specifications and/or terms and conditions.

4. Cancellation by the Purchasing Agent for nonperformance shall be subject to the following rules:
a. A formal complaint of nonperformance or unsatisfactory performance shall be submitted by an authorized state official to the Purchasing Agent. Such complaint shall provide a description of and justification for the complaint.

b. The Purchasing Agent shall direct the complaint to the Standards and Inspection Unit (SIU) of the Office of Purchases.

c. The SIU inspector, in conjunction with the Office of Purchases official (buyer) responsible for the contract, shall be authorized to attempt to resolve the problem to the satisfaction of the user agency.

d. The inspector and buyer shall report in writing to the Purchasing Agent whether the problem requires formal action, and if the problem has not been resolved, the Purchasing Agent shall notify the contractor in writing that he/she is not in compliance with the contract. Such notice of nonperformance shall:
(1) specify the nature of the complaint,

(2) direct the contractor to take corrective action,

(3) direct the contractor to respond in writing to the notice of nonperformance within a specified time period, and

(4) notify the contractor that failure to respond as directed may result in cancellation of the order.

5. If a contractor fails to take corrective action and/or respond to a notice of nonperformance, the Purchasing Agent may issue a change order canceling the contract.

6. If, after reviewing the contractor's response, the Purchasing Agent determines that the contractor is not out of compliance with the contract requirements, he shall so notify the user agency and the contractor in writing, providing a rationale for his decision.

7. If the Purchasing Agent determines that valid extenuating circumstances out of the control of the contractor have prevented compliance with the contract requirements, he shall so inform the user agency and may amend the contract to provide for a reasonable opportunity for the vendor to perform the contract, if necessary.

8. If the Purchasing Agent believes that a contractor's action or lack thereof presents a clear and immediate danger to the public interest, he may request in writing that the Chief Purchasing Officer authorize immediate termination of the contractual relationship.

9. Copies of all communications with a contractor regarding nonperformance shall be sent to the contractor's bonding company, power of attorney and the Department of Administration legal counsel.

10. If the Purchasing Agent determines that a contractor is unwilling or unable to perform a contract, he shall:
a. direct the contractor's bonding company to assume responsibility for the performance of the contract if a performance bond has been issued; and

b. so notify the user agency and contractor; and

c. notify the contractor whether he/she has been temporarily suspended or permanently debarred from the state Bidders List and shall be responsible for any costs incurred by the state in the completion of the contract.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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