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OAC 260:115-9-9 - Contract termination

  1. Reasons for contract termination. The State Purchasing Director may terminate a contract in its entirety or any portion thereof, between a supplier and a state agency if: 
    1. a supplier fails to post, or allows to expire, a bid bond, performance bond, or other type of surety bond the solicitation specifies; 
    2. a supplier fails to deliver an acquisition pursuant to the contract; 
    3. a supplier fails timely to replace at the supplier’s expense, acquisitions that fail to meet the requirements of the contract or have latent defects; 
    4. a supplier misrepresents the supplier’s ability to provide an acquisition; 
    5. a supplier’s financial or other condition, including but not limited to, bankruptcy or other evidence of insolvency which may affect the supplier’s ability to perform; 
    6. a supplier commits an unlawful act or an act that impairs the supplier’s ability to perform; 
    7. a supplier commits an act that could result in the supplier’s suspension or debarment from the Supplier List;
    8. the State Purchasing Director determines that an administrative error occurred prior to contract performance; or, 
    9. if sufficient appropriations are not made by the Legislature or other appropriate governing entity to pay amounts due for multiple year agreements. 
  2. Supplier responsible for damages. If the State Purchasing Director terminates a contract between a supplier and a state agency, the Attorney General of the State of Oklahoma, the State Purchasing Director, or the requisitioning agency, may seek damages from the supplier. Damages may include additional cost to obtain the acquisition from another supplier, the cost of re-bidding the acquisition and the cost of acquisition receipt delay. 

Associated Statutes

Purchasing Reference Guide

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