8I02 Violation of a CA

The violation of a CA may occur during the term of the agreement or after the expiration of the agreement.

a. Violation During the Term of a CA. If a CO determines that a contractor violated the provisions of a CA prior to the expiration of the CA, the procedures set out at 41 CFR 60-1.34, 41 CFR 60-300.63 and 41 CFR 60-741.63 require the CO to send the contractor a 15-Day Notice.421 The Regional Director, or designee, signs the 15-Day Notice. Prior to issuing a 15-Day Notice, the CO must obtain appropriate approval.

b. Repetition of Violation. If the CO finds that the contractor repeats the same violation after the CA has expired, the CO should discuss the available options with RSOL.

• If the CO finds during the course of a new compliance evaluation (opened after the expiration of the two-year grace period following the expiration of a CA) that the contractor repeated any of the violations addressed in a prior CA, the CO should discuss the option of pursuing an enforcement action rather than a second CA.
• If the CO and RSOL decide to remedy these violations, along with any new violation, through a second CA, the CA will have a minimum term of four years or longer if it is necessary to ensure full implementation of remedy or in unusual circumstances. It will also have at least one compliance evaluation before the CA expires to ensure that the contractor is fulfilling or has fulfilled its terms.