48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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16 sections with “Settlement Proposal (Inventory Basis)”

  • FAR 49.602-1 Termination settlement proposal forms.
    (a) Standard Form 1435, Settlement Proposal (Inventory Basis), shall be used to submit settlement proposals resulting from the termination of fixed-price contracts if the proposals are computed on an inventory basis (see 49.206-2(a)). (b) …
  • FAR 49.206-2 Bases for settlement proposals.
    (a) Inventory basis. (1) Use of the inventory basis for settlement proposals is preferred. Under this basis, the contractor may propose only costs allocable to the terminated portion of the contract, and the settlement proposal must itemize…
  • FAR 49.108-3 Settlement procedure.
    …le with subcontractors in general conformity with the policies and principles relating to settlement of prime contracts in this subpart and subparts 49.2 or 49.3. However, the basis and form of the subcontractor's settlement proposal must b…
  • FAR 53.249 Termination of contracts.
    …Purchases and Services Other Than Personal. (See 49.302(a).) (2) SF 1435 (Rev. 03/2016), Settlement Proposal (Inventory Basis). (See 49.602-1(a).) (3) SF 1436 (Rev. 5/2004), Settlement Proposal (Total Cost Basis). (See 49.602-1(b).) (4) …
  • FAR 31.205-42 Termination costs.
    …hinery and equipment and starting load costs. (3) When initial costs are included in the settlement proposal as a direct charge, such costs shall not also be included in overhead. Initial costs attributable to only one contract shall not b…
  • FAR 49.002 Applicability.
    … of prime contracts. The contracting officer shall use this part as a guide in evaluating settlements of subcontracts terminated for the convenience of a contractor whenever the settlement will be the basis of a proposal for reimbursement f…
  • FAR 49.203 Adjustment for loss.
    (a) In the negotiation or determination of any settlement, the TCO shall not allow profit if it appears that the contractor would have incurred a loss had the entire contract been completed. The TCO shall negotiate or determine the amount o…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts completely terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated ____________________…
  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    …ed, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).
    …ed, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 52.249-5 Termination for Convenience of the Government (Educational and Other Nonprofit Institutions).
    …nated, in which case the Government shall have the right to settle or pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    …ed, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 42.302 Contract administration functions.
    … by agency acquisition regulations. (24) Negotiate and execute contractual documents for settlement of partial and complete contract terminations for convenience, except as otherwise prescribed by part 49. (25) Negotiate and execute contr…
  • FAR 2.101 Definitions.
    …inent law, regulation, or contract, cannot be included in prices, cost-reimbursements, or settlements under a Government contract to which it is allocable. Unique and innovative concept, when used relative to an unsolicited research propos…
  • FAR 31.001 Definitions.
    … submission used as a basis for pricing a contract, contract modification, or termination settlement or for securing payments thereunder. Qualified pension plan means a pension plan comprising a definite written program communicated to and…
  • FAR 49.305-1 General.
    …shall not include an allowance for fee for subcontract effort included in subcontractors' settlement proposals. (b) The ratio of costs incurred to the total estimated cost of performing the contract or the terminated portion is only one fa…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.