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DHS is proposing to amend the Homeland Security Acquisition Regulation (HSAR) to add a new subpart and new contract clause to establish contract termination policy for the United States Coast Guard (USCG) and amend a clause to address the applicability of USCG’s contract termination policy to commercial items. Section 3523 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232)(14 U.S.C. 1155) requires that before terminating a procurement or acquisition contract with a total value of more than $1,000,000, the Commandant of the Coast Guard notify each vendor under such contract and require the vendor to maintain all work product related to the contract for a specific time period; adds a definition of work product and establishes a civil penalty for vendors who do not maintain the work product.