FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1
FAR 49.113 Cost principles.
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 says that the cost principles and procedures in the applicable subpart of Part 31 must be used when asserting, negotiating, or determining costs for termination settlements under contracts with entities other than educational institutions. For contracts with educational institutions for experimental, developmental, or research work, those cost principles serve as a guide for negotiating settlements, subject to the general principles in 49.201 and the exception noted in 31.104.
Applies to: Contracting officers and contractors involved in termination settlements under contracts with non-educational institutions and with educational institutions for experimental, developmental, or researc
What it requires
- Use the cost principles and procedures in the applicable subpart of Part 31 when asserting, negotiating, or determining costs relevant to termination settlements under contracts with other than educational institutions.
- Use those cost principles as a guide for negotiating settlements under contracts for experimental, developmental, or research work with educational institutions, subject to the general principles in 49.201 and the exception in 31.104.
Key terms: cost principles · termination settlements · educational institutions · experimental, developmental, or research work · general principles
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The cost principles and procedures in the applicable subpart of part 31 shall, subject to the general principles in 49.201, (a) be used in asserting, negotiating, or determining costs relevant to termination settlements under contracts with other than educational institutions, and (b) be a guide for the negotiation of settlements under contracts for experimental, developmental, or research work with educational institutions (but see 31.104).
Sections that refer to it
- 31.103 Contracts with commercial organizations.
← 49.112-2 Final payment. · 49.114 Unsettled contract changes. →
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.