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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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25 sections with “subcontractor settlement proposals”

  • 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 49.108-6 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 49.107 Audit of prime contract settlement proposals and subcontract settlements.
    … TCO. The review by the audit agency does not relieve the prime contractor or higher tier subcontractor of the responsibility for performing an accounting review. (c)(1) The responsibility of the prime contractor and of each subcontractor …
  • FAR 49.108-4 Authorization for subcontract settlements without approval or ratification.
    …tention, sale, or other disposal of termination inventory of the immediate and lower tier subcontractors (the TCO shall obtain the advice and recommendations of (A) the appropriate audit agency relating to the adequacy of the contractor's a…
  • FAR 49.108-1 Subcontractor's rights.
    A subcontractor has no contractual rights against the Government upon the termination of a prime contract. A subcontractor may have rights against the prime contractor or intermediate subcontractor with whom it has contracted. Upon terminat…
  • FAR 49.206-2 Bases for settlement proposals.
    … costs, initial costs, and general administrative costs; (iii) Costs of settlements with subcontractors; (iv) Settlement expenses; and (v) Other proper charges. (2) An allowance for profit (49.202) or adjustment for loss (49.203(b)) mus…
  • FAR 49.606 Granting subcontract settlement authorization.
    … articles or work at the contract price or for the settlement of termination proposals of subcontractors (except those settlements that have not been approved by the Government). (2) Any termination inventory involved has been disposed of …
  • FAR 49.105 Duties of termination contracting officer after issuance of notice of termination.
    …ement proposal of the prime contractor and, when appropriate, the settlement proposals of subcontractors; (3) Promptly negotiate settlement with the contractor and enter into a settlement agreement; and (4) Promptly settle the contractor'…
  • FAR 49.206-1 Submission of settlement proposals.
    …sal. (b) The settlement proposal must cover all cost elements including settlements with subcontractors and any proposed profit. With the consent of the TCO, proposals may be filed in successive steps covering separate portions of the cont…
  • FAR 2.101 Definitions.
    …or surplus. Labor surplus area concern means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the …
  • FAR 49.108-5 Recognition of judgments and arbitration awards.
    (a) When a subcontractor obtains a final judgment against a prime contractor, the TCO shall, for the purposes of settling the prime contract, treat the amount of the judgment as a cost of settling with the contractor, to the extent the judg…
  • FAR 49.108-8 Assignment of rights under subcontracts.
    …ts. This right does not obligate the Government to settle and pay settlement proposals of subcontractors. As a general rule, the prime contractor is obligated to settle and pay these proposals. However, when the TCO determines that it is in…
  • FAR 49.112-1 Partial payments.
    …ment proposals. The Government will process applications for partial payments promptly. A subcontractor shall submit its application through the prime contractor which shall attach its own invoice and recommendations to the subcontractor's …
  • FAR 49.601-2 Letter notice.
    …ner stated in the electronic notice. (b) Cessation of work and notification to immediate subcontractors. You shall take the following steps: (1) Stop all work, make no further shipments, and place no further orders relating to the contrac…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    …een used in arriving at this agreement. (2) The Contractor certifies that each immediate subcontractor, whose settlement proposal is included in the proposal settled by this agreement, has furnished the Contractor a certificate stating (i)…
  • FAR 52.219-9 Small Business Subcontracting Plan.
    … employer-employee relationship) entered into by a Federal Government prime Contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract. Total contract dollars means the final antici…
  • DFARS 249.7000 Terminated contracts with Canadian Commercial Corporation.
    … the format prescribed in FAR 49.602 and that they contain the amount of settlements with subcontractors. The termination contracting officer (TCO) shall prepare an appropriate settlement agreement. (See FAR 49.603.) The letter transmitting…
  • FAR 49.202 Profit.
    … shall not be allowed (but see 49.108-5). Profit for the contractor's efforts in settling subcontractor proposals shall not be based on the dollar amount of the subcontract settlement agreements but the contractor's efforts will be consider…
  • FAR 49.002 Applicability.
    …le for completed articles or work at the contract price and amounts for the settlement of subcontractor settlement proposals. Credits for retention or other disposal of termination inventory and amounts for advance or partial payments shall…
  • FAR 52.248-1 Value Engineering.
    …vings), the Contractor's allowable development and implementation costs shall include any subcontractor's allowable development and implementation costs, and any value engineering incentive payments to a subcontractor, clearly resulting fro…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    …ion of work contemplated under the contract, but excluding subcontract effort included in subcontractors' termination proposals, less previous payments for fee. (ii) If the contract is terminated for default, the total fee payable shall be…
  • FAR 42.302 Contract administration functions.
    …d management systems that relate to design, development, production, engineering changes, subcontractors, tests, management of engineering resources, reliability and maintainability, data control systems, configuration management, and indep…
  • FAR 49.109-1 General.
    …r that may be applied against the terminated contract and (b) all settlement proposals of subcontractors, except proposals that are specifically excepted from the agreement and reserved for separate settlement.
  • FAR 49.305-1 General.
    …'s adjusted fee 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 portio…
  • FAR 52.216-10 Incentive Fee.
    … they are beyond the control and without the fault or negligence of the Contractor or any subcontractor; (ii) The taking effect, after negotiating the target cost, of a statute, court decision, written ruling, or regulation that results in…

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.