FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1
FAR 49.108-6 Delay in settling subcontractor settlement proposals.
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 addresses what happens when a prime contractor cannot settle with a subcontractor, which delays settling the prime contract. The termination contracting officer (TCO) may then settle with the prime contractor while excluding the subcontractor's settlement proposal and preserving the Government's and prime contractor's rights regarding that proposal.
Applies to: Prime contractors and termination contracting officers (TCOs) in termination settlements involving subcontractor proposals
What it requires
- The TCO shall except the subcontractor settlement proposal from the settlement in whole or part
- The TCO shall reserve the rights of the Government and the prime contractor with respect to the subcontractor proposal
Key terms: TCO · prime contractor · subcontractor settlement proposal · settlement
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
When a prime contractor's inability to settle with a subcontractor delays the settlement of the prime contract, the TCO may settle with the prime contractor. The TCO shall except the subcontractor settlement proposal from the settlement in whole or part and reserve the rights of the Government and the prime contractor with respect to the subcontractor proposal.
← 49.108-5 Recognition of judgments and arbitration awards. · 49.108-7 Government assistance in settling subcontracts. →
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.