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

FAR 49.208 Equitable adjustment after partial termination.

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

After a partial termination of a fixed-price contract, the contractor may request an equitable adjustment to the price of the continued portion of the work. The termination contracting officer (TCO) forwards the proposal to the contracting officer unless negotiation authority has been delegated to the TCO. The section also prevents the same price increase or costs from being counted in both the equitable adjustment and the termination settlement.

Applies to: Contractors with partially terminated fixed-price contracts and the contracting officers handling them

What it requires

  • Submit the equitable adjustment proposal in the format of Table 15-2 of 15.408.
  • Ensure no portion of a price increase is included in a termination settlement made or in process.
  • Ensure no portion of the costs included in the equitable adjustment are included in the termination settlement.

Key terms: equitable adjustment · partial termination · fixed-price contract · TCO · termination settlement

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

The text

Under the termination clause, after partial termination, a contractor may request an equitable adjustment in the price or prices of the continued portion of a fixed-price contract. The TCO shall forward the proposal to the contracting officer except when negotiation authority is delegated to the TCO. The contractor shall submit the proposal in the format of Table 15-2 of 15.408.

(a) When the contracting officer retains responsibility for negotiating the equitable adjustment and executing a supplemental agreement, the contracting officer shall ensure that no portion of an increase in price is included in a termination settlement made or in process.

(b) The TCO shall also ensure that no portion of the costs included in the equitable adjustment are included in the termination settlement.

Sections it refers to

  • 15.408 Solicitation provisions and contract clauses.

← 49.207 Limitation on settlements. · 49.301 General. →

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 49.208 Equitable adjustment after partial termination · SpendQuery