Chapter 5 - Project Management
5.5 TERMINATION OF A PROJECT
Each research contract allows for the termination of the project by either party. ODOT will take all steps to avoid terminating projects; however, in instances where project termination is necessary, the following criteria will be applied.
5.5.1 TERMINATION BY ODOT
There are two instances in which ODOT may decide to terminate a project: (1) when a project is no longer beneficial to ODOT, or (2) when unresolvable issues with the researcher exist. It is the responsibility of the sponsoring program Office Administrator to inform IRIS immediately when a project falls into one of these categories.
When a project may no longer be beneficial, discussions will take place to determine the possibility of making modifications to the scope of work so that the existing project may produce beneficial results. If a new approach can be agreed upon by all parties, an addendum to the contract will be issued (see Section 5.2.2) to reflect the changes and the project will continue. If this is not possible, the project will be terminated.
IRIS will issue a certified cancellation letter to the appropriate representative at the researcher's agency. Upon receipt of the letter, all work associated with the project shall cease and all subcontracts and pending orders canceled. The contracting agency will have thirty (30) days to wrap up the project and submit a final invoice to ODOT for consideration. ODOT will reimburse the contractor for reasonable expenses associated with the wrap-up of the project.
ODOT may choose to terminate a project based on unresolvable difficulties with the researcher such as, but not limited to: constantly missing milestone dates; continual delinquency in submitting reports, invoices, and other documentation; inability to complete the project as defined in the proposal; qualifications of the research team are inconsistent with those given in the proposal; and refusal to carry out contractual obligations of the project as detailed in the contract and this manual. Ample attempts will be made by ODOT to communicate concerns to the contracting agency and seek rectification of the situation. In instances where the situation is unable to be corrected, project termination will occur as described above.
In accordance with federal guidelines for the administration of SP&R funds (49 CFR part 18, 49 CFR part 19, OMB A-87, OMB A-21, and OMB A-122), reimbursement for salaries and wages can occur only for direct services provided to a project. Therefore, existing and/or pending commitments to students for the reimbursement of salaries and wages (stipends) under a project being terminated are also terminated. All remaining balances of all stipends for students will be the responsibility of the hiring university regardless of the justification for the cancellation of the project.
In the event a contract that contains fixed fees is terminated, reimbursement of fees will be based on the percentage of the contract completed. For example, if 50% of the contract is completed prior to termination, then the contractor is entitled to 50% of the fixed fee. The percentage of contract completion will be determined by ODOT based on the work completed up to the date of termination. Previous invoices will be reviewed to ensure the fixed fee percentage is appropriately paid. IRIS will notify the researcher as to the appropriate amount of fixed fee, if any, to include in the final invoice.
5.5.2 TERMINATION BY THE CONTRACTOR
The contractor has the right to terminate the contract at any point during the project. Written notification of the situation containing details of the problems with the project must be sent to the IRIS Manager. This letter must include a request for a meeting and list at least three (3) different dates and times the researcher is available to meet. Copies of the meeting notification will be sent to the sponsoring Division Deputy Director and the research office of the contracting agency for their information and to attend at their discretion.
If the issues are still unresolved following the meeting, the person authorized to contractually bind the agency may request termination of the project via certified mail to the IRIS Manager. All work associated with the project shall cease by the date of the termination letter and the wrap-up of the project should begin immediately. The contracting entity will have thirty (30) days after IRIS receives this letter to conclude the wrap-up and submit a final invoice to ODOT. ODOT will reimburse the contractor for actual and reasonable expenses associated with the project.