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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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32 sections with “termination settlements”

  • 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 49.603-1 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 49.603-8 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 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 52.249-6 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 32.305 Loan guarantees for terminated contracts.
    …lly) for the convenience of the Government. Guaranteed loans also may be made before such termination if it is known that termination of particular contracts for the convenience of the Government is about to occur. These loans are expected …
  • 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 49.111 Review of proposed settlements.
    …ncy shall establish procedures, when necessary, for the administrative review of proposed termination settlements. When one agency provides termination settlement services for another agency, the agency providing the services shall also per…
  • 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 49.101 Authorities and responsibilities.
    (a) The termination clauses or other contract clauses authorize contracting officers to terminate contracts for convenience, or for default, and to enter into settlement agreements under this regulation. (b) The contracting officer shall t…
  • 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 49.108-4 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 49.206-1 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 49.601-2 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 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…
  • 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 15.403-4 Requiring certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
    …istrative convenience in the same modification. Negotiated final pricing actions (such as termination settlements and total final price agreements for fixed-price incentive and redeterminable contracts) are contract modifications requiring …
  • 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 49.108-8 Assignment of rights under subcontracts.
    (a) The termination for convenience clauses in 52.249, except the short-form clauses, obligate the prime contractor to assign to the Government, as directed by the TCO, all rights, titles, and interest under any subcontract terminated becau…
  • FAR 52.209-3 First Article Approval—Contractor Testing.
    …e costs thereof shall not be allocable to this contract for (1) progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government. (h) The Government may waive the requirement for first a…
  • FAR 52.209-4 First Article Approval—Government Testing.
    …e costs thereof shall not be allocable to this contract for (1) progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government. (i) The Government may waive the requirement for first a…
  • FAR 9.305 Risk.
    …on this authorization are allocable to the contract for— (a) Progress payments; and (b) Termination settlements if the contract is terminated for the convenience of the Government.
  • FAR 31.104 Contracts with educational institutions.
    …d as a guide in evaluating costs in connection with negotiating fixed-price contracts and termination settlements.
  • FAR 49.113 Cost principles.
    …ciples in 49.201, (a) be used in asserting, negotiating, or determining costs relevant to termination settlements under contracts with other than educational institutions, and (b) be a guide for the negotiation of settlements under contract…
  • FAR 49.202 Profit.
    … not be allowed the contractor for material or services that, as of the effective date of termination, have not been delivered by a subcontractor, regardless of the percentage of completion. The TCO may use any reasonable method to arrive a…
  • FAR 49.304-3 Submission of vouchers.
    When a partial termination settlement is limited to adjustment of fee, the contractor shall continue to submit the SF 1034, Public Voucher for Purchases and Services Other than Personal, for costs reimbursable under the contract. The contra…
  • FAR 52.216-10 Incentive Fee.
    …ayable shall not be subject to an increase or decrease as provided in this paragraph. The termination shall be accomplished in accordance with other applicable clauses of this contract. (4) For the purpose of fee adjustment, total allowabl…
  • DFARS 252.217-7012 Liability and insurance.
    …ss or damage; or (ii) Terminate the repair of any part or all of the vessel(s) under the Termination for Convenience of the Government clause of this agreement. (End of clause)
  • DFARS 252.228-7000 Reimbursement for War-Hazard Losses.
    … open claims and obtains necessary release documents within one year of the expiration or termination of this contract, unless otherwise extended by the Contracting Officer; and (3) Provides the Contracting Officer at the time of final set…

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.