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

FAR 49.110 Settlement negotiation memorandum.

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 requires the Termination Contracting Officer (TCO) to prepare a settlement negotiation memorandum after negotiations conclude. The memorandum documents the principal elements of the settlement, including pricing aspects, and is included in the termination case file for reviewing authorities. It helps ensure the settlement is properly documented and can be reviewed.

Applies to: Termination Contracting Officers (TCOs) handling termination settlements

What it requires

  • Prepare a settlement negotiation memorandum at the conclusion of negotiations
  • Describe the principal elements of the settlement
  • Document pricing aspects in accordance with 15.406-3
  • Distribute the memorandum in accordance with 15.406-3

Key terms: TCO · settlement negotiation memorandum · termination case file · reviewing authorities · lump-sum basis

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

The text

(a) The TCO shall, at the conclusion of negotiations, prepare a settlement negotiation memorandum describing the principal elements of the settlement for inclusion in the termination case file and for use by reviewing authorities. Pricing aspects of the settlement shall be documented in accordance with 15.406-3. The memorandum shall be distributed in accordance with 15.406-3.

(b) If the settlement was negotiated on the basis of individual items, the TCO shall specify the factors considered for each item. If the settlement was negotiated on an overall lump-sum basis, the TCO need not evaluate each item or group of items individually, but shall support the total amount of the recommended settlement in reasonable detail. The memorandum shall include explanations of matters involving differences and doubtful questions settled by agreement, and the factors considered. The TCO should include any other matters that will assist reviewing authorities in understanding the basis for the settlement.

Sections it refers to

← 49.109-7 Settlement by determination. · 49.111 Review of proposed settlements. →

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 49.110 Settlement negotiation memorandum · SpendQuery