FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1
FAR 49.103 Methods of settlement.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section lists the ways a contracting officer can settle a terminated cost-reimbursement contract or a fixed-price contract terminated for convenience: negotiated agreement, determination by the TCO, costing-out under vouchers using SF 1034, or a combination of these. It matters because it tells contractors how the settlement process may proceed and signals that negotiation is preferred over a unilateral determination.
Applies to: Terminated cost-reimbursement contracts and fixed-price contracts terminated for convenience
Key terms: negotiated agreement · determination by the TCO · costing-out under vouchers · SF 1034 · TCO
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Settlement of terminated cost-reimbursement contracts and fixed-price contracts terminated for convenience may be effected by (a) negotiated agreement, (b) determination by the TCO, (c) costing-out under vouchers using SF 1034, Public Voucher for Purchases and Services Other Than Personal, for cost-reimbursement contracts (as prescribed in subpart 49.3), or (d) a combination of these methods. When possible, the TCO should negotiate a fair and prompt settlement with the contractor. The TCO shall settle a settlement proposal by determination only when it cannot be settled by agreement.
Sections that refer to it
- 31.103 Contracts with commercial organizations.
← 49.102 Notice of termination. · 49.104 Duties of prime contractor after receipt of notice of termination. →
Rule changes for FAR Part 49
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 ↗ · proposed 2026-06-23 · comments due 2026-07-23
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-12-16 · effective 2025-01-03
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.