Important: Non-Cancellable Obligations

To: UMBC’s Research and Creative Achievement (RCA) Community

From: Division of Research and Creative Achievement

As UMBC continues to experience some of the uncertainties that may affect Federal research grants/contracts due to the emerging orders and policies established at the Federal level thus far in CY2025, we wanted to ensure that the RCA community was aware of some specific clauses as they relate to termination of grants and/or contracts.

There are clauses in the Uniform Guidance (the UG pertains to federal grants and cooperative agreements) and the Federal Acquisition Regulations (FAR pertains to federal contracts) that might provide for and allow for UMBC to collect non-cancellable obligations if allowed by the specific terms of the distinct and particular award.  Please see the following references below

·       Uniform Guidance (UG): 2 CFR 200.343  Effects of suspension and termination

·       Federal Acquisition Regulations(FAR): FAR Part 49  Termination of Contracts

Please review and understand the above referenced clauses. Non-cancellable obligations are allowable costs that have been properly budgeted in the project and which have been incurred through the date of termination, but which cannot be reversed at the point of termination. Some examples include, but are not limited to , travel costs that cannot be canceled, equipment purchases already committed, and employment contracts that might require a notification period (i.e. 60 days) prior to a termination date.  These are certain costs that can and should be included with any award termination, stop-work order, or work-pause where a Sponsor has requested that a final invoice be submitted.