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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.2

FAR 49.205 Completed end items.

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 explains how completed end items are handled after a termination for convenience. The contracting officer must promptly inspect and accept undelivered completed items that meet contract requirements, then decide which accepted items will still be delivered. Accepted and delivered items are invoiced at the contract price and left out of the settlement proposal; accepted items not delivered are included in the settlement proposal at the contract price, adjusted for savings and credits.

Applies to: Contractors with completed end items after a termination for convenience

What it requires

  • Invoice accepted and delivered end items at the contract price in the usual manner
  • Do not include accepted and delivered end items in the settlement proposal
  • Include accepted but undelivered end items in the settlement proposal at the contract price, adjusted for any saving of freight or other charges, together with any credits for their purchase, retention, or sale

Key terms: TCO · completed end items · settlement proposal · contract price · termination

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

The text

(a) Promptly after the effective date of termination, the TCO shall (1) have all undelivered completed end items inspected and accepted if they comply with the contract requirements, and (2) determine which accepted end items are to be delivered under the contract. The contractor shall invoice accepted and delivered end items at the contract price in the usual manner and shall not include them in the settlement proposal. When completed end items, though accepted, are not to be delivered under the contract, the contractor shall include them in the settlement proposal at the contract price, adjusted for any saving of freight or other charges, together with any credits for their purchase, retention, or sale.

(b) Work in place accepted by the Government under a construction contract is not considered a completed item even though that work may have been paid for at unit prices specified in the contract.

Sections that refer to it

← 49.204 Deductions. · 49.206 Settlement proposals. →

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 49.205 Completed end items · SpendQuery