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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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41 sections with “settlement proposals”: the first 40

  • FAR 49.107 Audit of prime contract settlement proposals and subcontract settlements.
    (a) The TCO shall refer each prime contractor settlement proposal valued at or above the threshold for obtaining certified cost or pricing data set forth in FAR 15.403-4(a)(1) to the appropriate audit agency for review and recommendations. …
  • FAR 49.109-6 Joint settlement of two or more settlement proposals.
    … the contractor, the TCO or TCO's concerned may negotiate jointly two or more termination settlement proposals of the same contractor under different contracts, even though the contracts are with different contracting offices or agencies. I…
  • FAR 49.206-1 Submission of settlement proposals.
    … provisions of the termination clause, the contractor should promptly submit to the TCO a settlement proposal for the amount claimed because of the termination. The final settlement proposal must be submitted within one year from the effect…
  • 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 49.108-6 Delay in settling subcontractor settlement proposals.
    When a prime contractor's inability to settle with a subcontractor delays the settlement of the prime contract, the TCO may settle with the prime contractor. The TCO shall except the subcontractor settlement proposal from the settlement in …
  • FAR 49.605 Request to settle subcontractor settlement proposals.
    Contractors requesting authority to settle subcontractor settlement proposals shall furnish applicable information from the list below and any additional information required by the contracting officer: (a) Name of contractor and address o…
  • FAR 49.108 Settlement of subcontract settlement proposals.
  • FAR 49.206 Settlement proposals.
  • FAR 49.108-4 Authorization for subcontract settlements without approval or ratification.
    …may, upon written request, give written authorization to the prime contractor to conclude settlements of subcontracts terminated in whole or in part without approval or ratification when the amount of settlement (see 49.002(d)) is $100,000 …
  • FAR 49.109-7 Settlement by determination.
    (a) General. If the contractor and TCO cannot agree on a termination settlement, or if a settlement proposal is not submitted within the period required by the termination clause, the TCO shall issue a determination of the amount due consis…
  • 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 49.606 Granting subcontract settlement authorization.
    Contracting officers shall use the following format when granting subcontract settlement authorization: LETTER OF AUTHORIZATION (a) Your request of ______ (date) is approved, and you are authorized, subject to the limitations of subsectio…
  • FAR 49.303-5 Final settlement.
    (a) The TCO shall proceed with the settlement and execution of a settlement agreement upon receipt of the audit report, if applicable, and the contract audit closing statement covering vouchered costs. (b) The TCO shall adjust the fee as p…
  • 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 49.105 Duties of termination contracting officer after issuance of notice of termination.
    … the TCO shall— (1) Direct the action required of the prime contractor; (2) Examine the settlement proposal of the prime contractor and, when appropriate, the settlement proposals of subcontractors; (3) Promptly negotiate settlement with…
  • FAR 49.108-8 Assignment of rights under subcontracts.
    … clauses) also provide the Government the right, in its discretion, to settle and pay any settlement proposal arising out of the termination of subcontracts. This right does not obligate the Government to settle and pay settlement proposals…
  • FAR 49.109-1 General.
    When a termination settlement has been negotiated and all required reviews have been obtained, the contractor and the TCO shall execute a settlement agreement on Standard Form 30 (Amendment of Solicitation/Modification of Contract) (see 49.…
  • FAR 49.112-1 Partial payments.
    (a) General. If the contract authorizes partial payments on settlement proposals before settlement, a prime contractor may request them on the form prescribed in 49.602-4 at any time after submission of interim or final settlement proposals…
  • FAR 49.601-2 Letter notice.
    …ect to the exceptions in subparagraph (1) above; (iv) Provide instructions to submit any settlement proposal promptly; and (v) Request that similar notices and instructions be given to its immediate subcontractors. (4) Notify the Contrac…
  • 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 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) …
  • DFARS 249.7000 Terminated contracts with Canadian Commercial Corporation.
    …acting officers shall ensure that the Canadian Commercial Corporation submits termination settlement proposals in the format prescribed in FAR 49.602 and that they contain the amount of settlements with subcontractors. The termination contr…
  • FAR 49.202 Profit.
    …and work done by the contractor for the terminated portion of the contract but not on the settlement expenses. Anticipatory profits and consequential damages shall not be allowed (but see 49.108-5). Profit for the contractor's efforts in se…
  • 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 49.108-1 Subcontractor's rights.
    …rime contract, the prime contractor and each subcontractor are responsible for the prompt settlement of the settlement proposals of their immediate subcontractors.
  • FAR 49.108-5 Recognition of judgments and arbitration awards.
    …aw rights of the subcontractor; (3) The contractor made reasonable efforts to settle the settlement proposal of the subcontractor; (4) The contractor gave prompt notice to the contracting officer of the initiation of the proceedings in wh…
  • FAR 31.110 Indirect cost rate certification and penalties on unallowable costs.
    …ntract clause prescription. (b) If unallowable costs are included in final indirect cost settlement proposals, penalties may be assessed. See 42.709 for administrative procedures regarding the penalty assessment provisions and the related …
  • 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 49.602-2 Inventory forms.
    …le, and SF 1429, Inventory Disposal Schedule—Continuation Sheet, shall be used to support settlement proposals submitted on the forms specified in 49.602-1(b) and (d).
  • 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 52.216-8 Fixed Fee.
    …t and royalty reports, and is not delinquent in submitting final vouchers on prior years' settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor's past performance …
  • FAR 52.216-9 Fixed Fee—Construction.
    …t and royalty reports, and is not delinquent in submitting final vouchers on prior years' settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor's past performance …
  • FAR 52.216-10 Incentive Fee.
    …t and royalty reports, and is not delinquent in submitting final vouchers on prior years' settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor's past performance …
  • FAR 52.219-9 Small Business Subcontracting Plan.
    …ganized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended (43 U.S.C. 1601, et seq.) and which is considered a minority and economically disadvantaged concern under the criteria at 4…
  • FAR 52.248-1 Value Engineering.
    …h (h)(3) above) and shall not be subject to subsequent adjustment. (5) Alternate no-cost settlement method. When, in accordance with section 48.104-4 of the Federal Acquisition Regulation (FAR), the Government and the Contractor mutually a…
  • 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 3.104-1 Definitions.
    …rder, or an order under a Basic Ordering Agreement; (5) The amount paid or to be paid in settlement of a claim; or (6) The estimated monetary value of negotiated overhead or other rates when applied to the Government portion of the applic…

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.