What a cure notice is, when to issue one, what it needs to say, and why it should be your first move when contractor performance falls short.
A cure notice is a written notice from the contracting officer to the contractor stating that the government considers the contractor to be in danger of default for either failure to make progress or failure to perform the contract, and giving the contractor a specified period of time to cure the problem. It is governed by FAR 49.402-3(d) and (e).
The cure notice is a prerequisite to termination for default in most situations. If you terminate a contractor for default without first issuing a cure notice (when one was required), the termination is likely to be converted to a termination for convenience on appeal, which means the contractor gets paid for work performed and you lose your leverage.
A cure notice does not terminate anything. It does not modify the contract. It does not penalize the contractor. It tells the contractor: here is what is wrong, you have this many days to fix it, and if you do not fix it the government may terminate the contract for default. That is all it does. And that is why it should be your first step when you identify a performance problem.
Some offices have a practice of sending "letters of concern" or "letters of caution" before issuing a cure notice. These are not required by the FAR, have no legal effect, and create a problem: they add time between when you identify a deficiency and when you can act on it.
Here is the practical issue. You notice the contractor is falling behind on deliveries. You send a letter of concern. The contractor responds with a recovery plan. The problem continues. You send another letter. Eventually the situation reaches a point where the contractor clearly cannot recover, and now you need to issue a cure notice followed by a show-cause letter and possibly a termination. All the time you spent on letters of concern did not advance the process by a single day.
A cure notice, by contrast, starts the clock. It gives the contractor a defined period to fix the problem. If the problem gets fixed, everyone is better off. If it does not, you have a documented record that the contractor was put on notice, given a fair opportunity to cure, and failed to do so. That record is what protects the government if the termination is appealed.
FAR 49.402-3(d) requires a cure notice before termination for default when the contractor has failed to make progress or failed to perform any other provision of the contract (other than failure to deliver on time). The cure notice must give the contractor at least 10 days to cure the failure.
| Situation | Cure Notice Required? |
|---|---|
| Contractor failing to make progress and endangering performance of the contract | Yes. FAR 49.402-3(d). |
| Contractor failing to perform a contract provision (other than delivery) | Yes. FAR 49.402-3(d). |
| Contractor failed to deliver by the contract delivery date (date has already passed) | Not required. You may proceed directly to a show-cause notice or termination. However, issuing a cure notice first is still good practice if there is any possibility the contractor can still deliver. |
| Contractor performance is substandard but the delivery date has not passed | Yes. This is a failure to make progress or perform. |
The key distinction: if the delivery date has already passed, the FAR does not require a cure notice before termination for default. But if the contractor is struggling before the delivery date, you must issue a cure notice and give them a chance to fix it before you can terminate.
A cure notice must contain the following elements. If any of these are missing, the notice may be found deficient on appeal.
You are notified that the Government considers your [specify the contractor's failure or failures] a condition that is endangering performance of the contract. Therefore, unless this condition is cured within 10 days after receipt of this notice [or insert any longer time that the Contracting Officer may consider reasonably necessary], the Government may terminate for default under the terms and conditions of the [insert clause title] clause of this contract.
That is the FAR-prescribed format. It is short. In practice, you should supplement this language with a specific description of the failure (dates, contract provisions, quantities) so the record is clear enough to support the next step if the contractor does not cure. The FAR format gives you the structure; your job is to fill in the bracket language with enough detail that anyone reading the record can understand exactly what the contractor was told to fix.
When the cure period ends, one of three things has happened:
The contractor cured the deficiency. Document that the problem was resolved. The cure notice served its purpose. No further action is required unless the problem recurs.
The contractor partially cured or made meaningful progress. You have a judgment call. If the contractor is demonstrating good faith effort and making real progress, you may extend the cure period in writing. If the progress is cosmetic or insufficient, you may proceed to the next step. Document your reasoning either way.
The contractor failed to cure. At this point you have a documented record showing: (1) the contractor was notified of a specific deficiency, (2) the contractor was given a reasonable period to cure it, and (3) the contractor did not cure it. This record supports a termination for default. In most cases, the next step is a show-cause notice (covered in I-21), which gives the contractor one more opportunity to explain why the contract should not be terminated. After that, the termination decision is made, typically with significant involvement from your legal counsel and, in some agencies, a termination contracting officer (TCO).
Vague descriptions of the deficiency. "The contractor's performance has been unsatisfactory" does not tell anyone what was wrong. Cite the specific PWS section, CLIN, or contract provision. Include dates, numbers, and objective facts. The cure notice needs to be specific enough that the contractor knows exactly what to fix and the record shows exactly what was at issue.
Cure period that is too short to allow actual correction. If the deficiency involves hiring staff, procuring materials, or restructuring a team, 10 days may not be realistic. A cure period that appears designed to fail looks pretextual on appeal. Give the contractor enough time to actually cure the problem.
Failing to send the notice in writing. Verbal warnings do not satisfy the FAR requirement. The cure notice must be in writing and you should confirm receipt (certified mail, email with read receipt, or hand delivery with signature).
Issuing the notice after the delivery date has already passed. If the delivery date passed and the contractor did not deliver, a cure notice is not required. You should issue a show-cause notice instead, or proceed to termination if the facts clearly support it. Issuing a cure notice in this situation is not wrong, but it adds time without legal benefit.
Not coordinating with legal. Cure notices create the record that may be litigated before a board of contract appeals. Your legal counsel should review the notice before you send it.
Each scenario below presents a contract performance problem. Decide whether a cure notice is the right action and, if so, identify what should go in it. The feedback explains the reasoning.
The authoritative provision on cure notices, show-cause notices, and the procedure leading to termination for default. Subsection (d) covers cure notice requirements; subsection (e) covers the 10-day minimum.
Open FAR 49.402-3 →The full subpart on termination for default, including the CO's obligations, contractor rights, and the relationship between cure notices, show-cause notices, and the termination decision.
Open FAR 49.4 →The contract clause that authorizes termination for default on fixed-price contracts. This is the clause cited in the cure notice consequences paragraph.
Open FAR 52.249-8 →Default clause for fixed-price R&D contracts. Similar structure to 52.249-8 but tailored to R&D performance.
Open FAR 52.249-9 →Establishes the government's right to terminate for default when the contractor fails to perform, fails to make progress, or fails to comply with contract terms.
Open FAR 49.402-1 →After a termination for default, the government may repurchase the supplies or services from another source and charge the defaulting contractor for excess costs.
Open FAR 49.402-6 →