Statewide Internet Portal Authority (SIPA)

the Contractor was not in default then such termination shall be treated as a termination 

for convenience as described herein.   

B. Termination for Convenience: SIPA shall have the right to terminate this contract by 

giving the Contractor at least twenty (20) days prior written notice. If notice is so 

given, this contract shall terminate on the expiration of the specified time period, and 

the liability of the parties hereunder for further performance of the terms of this 

contract shall thereupon cease, but the parties shall not be released from the duty to 

perform their obligations up to the date of termination.  

C. Immediate Termination: This contract is subject to immediate termination by SIPA 

in the event that SIPA determines that the health, safety, or welfare of persons receiving 

services may be in jeopardy. Additionally, SIPA may immediately terminate this 

contract upon verifying that the Contractor has engaged in or is about to participate in 

fraudulent or other illegal acts.  

D. Termination for Financial Exigency: SIPA shall have the right to terminate this 

contract for financial exigency by giving the Contractor at least thirty (30) days prior 

written notice. For the purposes of this provision, a financial exigency shall be a 

determination made by the Colorado legislature or its Joint Budget Committee that the 

financial circumstances of SIPA are such that it is in the best interest of SIPA to 

terminate this contract. If notice of such termination is so given, this contract shall 

terminate on the expiration of the time period specified in the notice, and the liability of 

the parties hereunder for further performance of the terms of this contract shall thereupon 

cease, but the parties shall not be released from the duty to perform their obligations up to 

the date of termination.  

E. In the event that SIPA terminates this contract under the Termination for Convenience 

or Termination for Financial Exigency provisions, the Contractor is entitled to submit a 

termination claim within ten (10) days of the effective date of termination. The 

termination claim shall address and SIPA shall consider paying the following costs:  

1. The contract price for performance of work, which is accepted by SIPA, up to the 

effective date of the termination.  

2. Reasonable and necessary costs incurred in preparing to perform the terminated 

portion of the contract.  

3. Reasonable profit on the completed but undelivered work up to the date of  

termination. 

4. The costs of settling claims arising out of the termination of subcontracts or orders, not 

to exceed 30 days pay for each subcontractor.  

5. Reasonable accounting, legal, clerical, and other costs arising out of the 

termination settlement. 

In no event shall reimbursement under this clause exceed the contract amount reduced by 

amounts previously paid by SIPA to the Contractor.  

Request for Proposal 10/29/2004 

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