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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1

FAR 49.105-2 Release of excess funds.

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 tells the termination contracting officer (TCO) to estimate the funds needed to settle a termination and recommend releasing any excess funds to the contracting officer within 30 days of receiving the termination notice. It also requires ongoing monitoring of required funds so additional excess funds can be released promptly, and if earlier releases cause a shortage, the contracting officer must restore the funds within 30 days.

Applies to: Termination contracting officers and contracting officers handling terminated contracts

What it requires

  • Estimate the funds required to settle the termination
  • Recommend release of excess funds to the contracting officer within 30 days after receipt of the termination notice
  • Maintain continuous surveillance of required funds to permit timely release of additional excess funds
  • Promptly inform the contracting officer if previous releases cause a shortage of funds required for settlement

Key terms: TCO · contracting officer · release of excess funds · deobligation · termination notice

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The TCO shall estimate the funds required to settle the termination, and within 30 days after the receipt of the termination notice, recommend the release of excess funds to the contracting officer. The initial deobligation of excess funds should be accomplished in a timely manner by the contracting officer, or the TCO, if delegated the responsibility. The TCO shall not recommend the release of amounts under $1,000, unless requested by the contracting officer.

(b) The TCO shall maintain continuous surveillance of required funds to permit timely release of any additional excess funds (a recommended format for release of excess funds is in 49.604). If previous releases of excess funds result in a shortage of the amount required for settlement, the TCO shall promptly inform the contracting officer, who shall reinstate the funds within 30 days.

Sections it refers to

  • 49.604 Release of excess funds under terminated contracts.

← 49.105-1 Termination status reports. · 49.105-3 Termination case file. →

Rule changes for FAR Part 49

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 49.105-2 Release of excess funds · SpendQuery