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Clauses · DFARS · Termination

DFARS 252.249-7002 Notification of Anticipated Contract Termination or Reduction

Does the regulation require it to flow down?

Yes

(d): notify each first-tier sub with a subcontract >= $700,000 within 60 days of the CO's notice, and require each sub to impose the same scheme on its subs >= $150,000 (thresholds from 249.7003(c)) — paragraph letter (d) per reading of the text in effect on 2026-08-04

Form
substance — contractually require from subs the same cascading notifications
Reaches
all tiers, with decreasing thresholds

Checked against acquisition.gov on 2026-08-04 · edition DEC 2022 · base v0.9.3 Read the text ↗

What it makes you produce

2 items for your checklist, slowest first.

  1. Something you write2

    Days to weeks, and nobody outside your company has to agree to it.

    • Written notice to your employees or their representatives, to the state rapid response entity and to the chief elected official of the local government, within two weeks of the buyer's notice of an anticipated termination or substantial reduction

      DFARS 252.249-7002(c)(1)
    • The same notice to each first-tier supplier at or above the threshold, not later than 60 days after that notice, carrying the requirement that they notify their own suppliers one tier down

      Owed for a first-tier subcontract at or above the figure DFARS 249.7003 carries — $700,000 at the first tier, and $150,000 one tier below

      DFARS 252.249-7002(d)(1)

When it is used

Applies in ALL contracts under a major defense program (a program producing/acquiring a major system, 10 U.S.C. 3041(a)) — prescription 249.7004, no threshold at the contract level. The obligation triggers when the CO gives written notice of anticipated termination or substantial reduction tied to appropriations levels. Flows down with thresholds: a first-tier sub with a subcontract >= $700,000 gets the notice; each sub repeats the scheme with its own >= $150,000 (249.7003(c)).

Read closely

The dollar figures are not in the clause: (d) points at DFARS 249.7003, where they sit. Nothing is produced unless the buyer's notice arrives, and what the notices buy is eligibility — they open retraining benefits under the Workforce Innovation and Opportunity Act for the people being laid off.

The 12 templates that name it, with the line
76CORPDOC 2A — FAR/DFARS Flowdown Provisions for Commercial Products/Services under a DoD Prime ContractLockheed Martinline 182143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 471155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 506233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 166160Raytheon TC-003 — Supplement 2: Government Contract Provisions from the DFARSRTXline 197166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2554166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2491168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2580240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2902106L3Harris LGL-50.F2 — General T&C and Flowdown Clauses for Commercial Products/Services under a U.S. Government ContractL3Harrisline 2008273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 1247178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1900

Source: acquisition.gov, DFARS 252.249-7002, 249.7003(c) and 249.7004 (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.