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

FAR 49.603-9 Settlement of reservations.

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 exact wording to insert in Block 14 of SF 30 when a contractor and the Government settle items that were previously reserved or excepted from a termination settlement. It matters because it documents the payment for those reserved items and the contractor's release of related claims.

Applies to: Contracting parties settling reserved or excepted items after a contract termination

What it requires

  • Insert the specified language in Block 14 of SF 30
  • List the reserved or excepted items being settled
  • State the amount the Government agrees to pay the Contractor
  • Reverse the words Government and Contractor in subparagraphs (b)(1) and (b)(2) when payment is due the Government

Key terms: Supplemental Agreement · settlement of reservations · reserved or excepted items · releases and forever discharges · SF 30

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 for settlement of reservations.]

(a) Supplemental Agreement No. ________, dated ________, was executed to reflect the settlement of the termination of this contract. The supplemental agreement excepted from the settlement certain items described in the agreement including the items described in paragraph (b) below. This supplemental agreement settles those items listed in paragraph (b) below.

(b) The parties agree to the following:

(1) The Government agrees to pay the Contractor $____________ for the following reserved or excepted items:* [List items.]

(2) The Contractor releases and forever discharges the Government from all liability and from all existing and future claims and demands that it may have under this contract, insofar as it pertains to the contract, for the items described in subparagraph (1) above.*

[*When payment is due the Government, reverse the words Government and Contractor in subparagraphs (b)(1) and (b)(2).]

(End of agreement)

Sections that refer to it

← 49.603-8 Fixed-price contracts—settlements with subcontractors only. · 49.604 Release of excess funds under terminated contracts. →

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 49.603-9 Settlement of reservations · SpendQuery