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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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60 sections with “termination settlement proposal”: the first 40

  • FAR 49.602-1 Termination settlement proposal forms.
    …oposal (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) Standard Form 1436, Settlement Propos…
  • 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 49.206-1 Submission of settlement proposals.
    (a) Subject to the 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 ye…
  • FAR 49.206-2 Bases for settlement proposals.
    …ory basis is also appropriate for use under the following circumstances: (i) The partial termination of a construction or related professional services contract. (ii) The partial or complete termination of supply orders under any terminat…
  • FAR 49.603-3 Cost-reimbursement contracts—complete termination, if settlement includes cost.
    … This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated __________________. (b) The parties agree to the following: (1) The Contractor certifies that all contract termination inventory (…
  • FAR 49.502 Termination for convenience of the Government.
    …short form)—(1) General use. The contracting officer shall insert the clause at 52.249-1, Termination for Convenience of the Government (Fixed-Price) (Short Form), in solicitations and contracts when a fixed-price contract is contemplated a…
  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    As prescribed in 49.502(b)(1)(i), insert the following clause: Termination for Convenience of the Government (Fixed-Price) (APR 2012) (a) The Government may terminate performance of work under this contract in whole or, from time to time,…
  • FAR 52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).
    As prescribed in 49.502(b)(2), insert the following clause: Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements) (APR 2012) (a) The Government may terminate performance of work under this con…
  • FAR 52.249-5 Termination for Convenience of the Government (Educational and Other Nonprofit Institutions).
    As prescribed in 49.502(d), insert the following clause: Termination for Convenience of the Government (Educational and Other Nonprofit Institutions) (AUG 2016) (a) The Government may terminate performance of work under this contract in w…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    As prescribed in 49.503(a)(1), insert the following clause: Termination (Cost-Reimbursement) (MAY 2004) (a) The Government may terminate performance of work under this contract in whole or, from time to time, in part, if— (1) The Contrac…
  • FAR 49.109-6 Joint settlement of two or more settlement proposals.
    …e consent of 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…
  • FAR 49.503 Termination for convenience of the Government and default.
    (a) Cost-reimbursement contracts—(1) General use. Insert the clause at 52.249-6, Termination (Cost-Reimbursement), in solicitations and contracts when a cost-reimbursement contract is contemplated, except contracts for research and developm…
  • FAR 49.605 Request to settle subcontractor settlement proposals.
    …orization requested. (d) A full description of the applicant's organization for handling terminations, including the names of the officials in charge of processing and settling proposals. (e) The number and dollar amount (estimated if nec…
  • FAR 12.403 Termination.
    …convenience of the Government or for cause. However, the paragraphs in 52.212-4 entitled “Termination for the Government's Convenience” and “Termination for Cause” contain concepts which differ from those contained in the termination clause…
  • FAR 31.205-42 Termination costs.
    Contract terminations generally give rise to the incurrence of costs or the need for special treatment of costs that would not have arisen had the contract not been terminated. The following cost principles peculiar to termination situation…
  • FAR 49.104 Duties of prime contractor after receipt of notice of termination.
    After receipt of the notice of termination, the contractor shall comply with the notice and the termination clause of the contract, except as otherwise directed by the TCO. The notice and clause applicable to convenience terminations genera…
  • FAR 49.105 Duties of termination contracting officer after issuance of notice of termination.
    (a) Consistent with the termination clause and the 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 settle…
  • FAR 49.107 Audit of prime contract settlement proposals and subcontract settlements.
    …erform or have performed a desk review and include a written summary of the review in the termination case file. (b) The TCO shall refer subcontract settlements received for approval or ratification to the appropriate audit agency for revi…
  • FAR 49.108-3 Settlement procedure.
    …r any amount for loss of anticipatory profits or consequential damages resulting from the termination of any subcontract (but see 49.108-5). (b) Except as provided in 49.108-4, the TCO shall require that— (1) All subcontractor termination…
  • FAR 49.115 Settlement of terminated incentive contracts.
    …graph (j) of the clause at 52.216-16, Incentive Price Revision—Firm Target, and 52.249-2, Termination for Convenience of the Government (Fixed-Price). (1) Partial termination. Under a partially terminated contract, the TCO shall negotiate …
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    … This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated ________________________. (b) The parties agree to the following: (1) The Contractor certifies that all contract termination inven…
  • FAR 49.603-2 Fixed-price contracts—partial termination.
    … This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated __________________. (b) The parties agree to the following: (1) The terminated portion of the contract is as follows: [specify the…
  • FAR 49.603-5 Cost-reimbursement contracts—partial termination.
    …ntract, for settlement agreements for cost-reimbursement contracts as a result of partial termination.] (a) This supplemental agreement settles the termination settlement proposal resulting from the Notice of Termination dated ____________…
  • FAR 49.603-8 Fixed-price contracts—settlements with subcontractors only.
    …ment settles that portion of the settlement proposal of the Contractor that is based upon termination of the following subcontracts entered into in performing this contract: [Insert a list of the terminated subcontracts included in this se…
  • FAR 49.606 Granting subcontract settlement authorization.
    … subject to the following conditions and requirements: (1) The amount of the subcontract termination settlement does not exceed $____________ [insert limit of authorization being granted], computed as follows: (i) Do not deduct advance or…
  • FAR 52.216-5 Price Redetermination—Prospective.
    As prescribed in 16.205-4, insert the following clause: Price Redetermination—Prospective (JAN 2022) (a) General. The unit prices and the total price stated in this contract shall be periodically redetermined in accordance with this claus…
  • FAR 42.705-1 Contracting officer determination procedure.
    (a) Applicability and responsibility. Contracting officer determination shall be used for the following, with the indicated cognizant contracting officer (or cognizant Federal agency official) responsible for establishing the final indirect…
  • FAR 49.208 Equitable adjustment after partial termination.
    Under the termination clause, after partial termination, a contractor may request an equitable adjustment in the price or prices of the continued portion of a fixed-price contract. The TCO shall forward the proposal to the contracting offic…
  • FAR 49.303-1 Submission of settlement proposal.
    …nvouchered costs and any proposed fee to the TCO within 1 year from the effective date of termination, unless the period is extended by the TCO. The contractor shall use the form prescribed in 49.602-1, unless the TCO authorizes otherwise. …
  • FAR 49.304-2 Submission of settlement proposal (fee only).
    …tlement proposal shall be submitted to the TCO within one year from the effective date of termination, unless the period is extended by the TCO. The proposal may be submitted in the form prescribed in 49.602-1 or by letter appropriately cer…
  • FAR 49.403 Termination of cost-reimbursement contracts for default.
    …) The right to terminate a cost-reimbursement contract for default is provided for in the Termination for Default or for Convenience of the Government clause at 52.249-6. A 10-day notice to the contractor before termination for default is r…
  • FAR 53.249 Termination of contracts.
    (a) The following forms are prescribed for use in connection with the termination of contracts, as specified in subpart 49.6. These forms are available at the GSA Forms Library at https://www.gsa.gov/forms. These forms are authorized for lo…
  • DFARS 249.7000 Terminated contracts with Canadian Commercial Corporation.
    …er 8, Annex 8.3, available at http://www.tpsgc-pwgsc.gc.ca/app-acq/ga-sm/index-eng.html, “Termination for Convenience Process, Public Works and Government Services Canada.” (b) Contracting officers shall ensure that the Canadian Commercial…
  • FAR 2.101 Definitions.
    …For use in subpart 9.4, see the definition at 9.403. (2) For use of affiliates in size determinations, see the definition of “small business concern” in this section. Agency head or head of the agency means the Secretary, Attorney General…
  • FAR 49.103 Methods of settlement.
    …e contracts terminated for convenience may be effected by (a) negotiated agreement, (b) determination by the TCO, (c) costing-out under vouchers using SF 1034, Public Voucher for Purchases and Services Other Than Personal, for cost-reimburs…
  • FAR 49.108-4 Authorization for subcontract settlements without approval or ratification.
    …tling settlement proposals, including proposals for retention, 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…
  • FAR 49.112-1 Partial payments.
    …ent of the contract price, adjusted for undelivered acceptable items completed before the termination date, or later completed with the approval of the TCO (see 49.205); (2) 100 percent of the amount of any subcontract settlement paid by t…
  • FAR 49.601-2 Letter notice.
    The following letter notice of termination is suggested for use if a contract for supplies is being terminated for convenience. With appropriate modifications, it may be used in terminating contracts for other than supplies and in terminati…
  • FAR 52.233-3 Protest After Award.
    …ard (AUG 1996) (a) Upon receipt of a notice of protest (as defined in FAR 33.101) or a determination that a protest is likely (see FAR 33.102(d)), the Contracting Officer may, by written order to the Contractor, direct the Contractor to st…
  • FAR 49.002 Applicability.
    (a)(1) This part applies to contracts that provide for termination for the convenience of the Government or for the default of the contractor (see also 12.403 and 13.302-4). (2) This part does not apply to commercial product and commercial…

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.