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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.6

FAR 49.603-6 No-cost settlement agreement—complete 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

This section provides the wording to use in Block 14 of SF 30 when a contractor and the Government execute a no-cost settlement agreement for a complete termination. It matters because it documents that the contractor waives all charges and releases the Government from contract obligations, except for any rights or liabilities specifically listed.

Applies to: Contractors and Government contracting officers executing a no-cost settlement agreement for a complete termination.

What it requires

  • Insert the specified language in Block 14 of SF 30.
  • List any reserved or excepted rights and liabilities.

Key terms: no-cost settlement agreement · complete termination · SF 30 · unconditionally waives · releases

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

The text

[Insert the following in Block 14 of SF 30 if a no-cost settlement agreement, under a complete termination, is to be executed.]

(a) This supplemental agreement __________ [insert “modifies the contract to reflect a no-cost settlement agreement with respect to the Notice of Termination dated __________” or, if not previously terminated, “terminates the contract in its entirety”.]

(b) The parties agree as follows:

The Contractor unconditionally waives any charges against the Government because of the termination of the contract and, except as set forth below, releases it from all obligations under the contract or due to its termination. The Government agrees that all obligations under the contract are concluded, except as follows:

[List reserved or excepted rights and liabilities. See 49.109-2 and 49.603-1(b)(7).]

(End of agreement)

Sections it refers to

Sections that refer to it

  • 49.109-4 No-cost settlement.
  • 49.402-4 Procedure in lieu of termination for default.

← 49.603-5 Cost-reimbursement contracts—partial termination. · 49.603-7 No-cost settlement agreement—partial termination. →

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 49.603-6 No-cost settlement agreement—complete termination · SpendQuery