Sec. 105.7. Determinations by the Comptroller

(a) The Comptroller shall review the report of the hearing officer. The Comptroller, in his reasonable judgment, may adopt or modify the report. On the basis of the report as adopted or modified, the Comptroller shall determine, in writing, whether, pursuant to section 139-h of the State Finance Law, the contract must be terminated, and if so, on what date the termination shall take effect.

(b) If the Comptroller determines that the contract shall be terminated retroactively, the Comptroller shall allow for the payment of the direct costs incurred by the contractor unless the Comptroller determines that the contractor has failed, without justification, to comply with the notice requirements. In such case, the Comptroller may disallow the payment of such direct costs.

(c) The Comptroller shall notify the contractor of the determinations made by sending a copy of the determinations to the contractor by registered mail. The Comptroller shall also send a copy of his determinations to the Attorney General and the appropriate public department, agency or official.