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

FAR 49.109-6 Joint settlement of two or more 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 allows a termination contracting officer (TCO) to combine two or more termination settlement proposals from the same contractor into a single joint negotiation, if the contractor agrees. It matters because it can simplify and consolidate accounting across multiple contracts, even those handled by different offices or agencies, and it sets out how a multi-contract settlement agreement must be documented and distributed.

Applies to: Termination contracting officers and contractors with multiple termination settlement proposals

What it requires

  • Obtain the contractor's consent before negotiating jointly
  • Consolidate accounting work to the greatest extent practical
  • Clearly identify the contracts involved in a multi-contract settlement agreement
  • Assign an amendment modification number to each contract

Key terms: TCO · termination settlement proposals · settlement agreement · apportion · amendment modification number

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

The text

(a) With the consent of the contractor, the TCO or TCO's concerned may negotiate jointly two or more termination settlement proposals of the same contractor under different contracts, even though the contracts are with different contracting offices or agencies. In such cases, accounting work shall be consolidated to the greatest extent practical. The resulting settlement may be evidenced by one settlement agreement covering all contracts involved or by a separate agreement for each contract involved.

(b) When the settlement agreement covers more than one contract, it shall (1) clearly identify the contracts involved, (2) assign an amendment modification number to each contract, (3) apportion the total amount of the settlement among the several contracts on some reasonable basis, (4) have attached or incorporated a schedule showing the apportionment, and (5) be distributed and attached to each contract involved in the same manner as other contract modifications.

Sections that refer to it

← 49.109-5 Partial settlements. · 49.109-7 Settlement by determination. →

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 49.109-6 Joint settlement of two or more settlement proposals · SpendQuery