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DARS PART 49 -- TERMINATION OF CONTRACTS



PART 49 -- TERMINATION OF CONTRACTS

TABLE OF CONTENTS

SUBPART 49.1 — GENERAL PRINCIPLES

49.101 Authorities and responsibilities.

49.102 Notice of termination.

49.107 Audit of prime contract settlement proposals and subcontract settlements.

49.108 Settlement of subcontract settlement proposals.

49.108-8 Assignment of rights under subcontracts.

49.109 Settlement agreements.

49.109-1 General.

49.109-7 Settlement by determination.

49.110 Settlement negotiation memorandum.

49.111 Review of proposed settlements.

49.112 Payment.

49.112-1 Partial payments.

49.114 Unsettled contract changes.

SUBPART 49.2 — ADDITIONAL PRINCIPLES FOR FIXED-PRICE CONTRACTS TERMINATED FOR CONVENIENCE

49.202 Profit.

49.203 Adjustment for loss.

49.206 Settlement proposals.

49.206-1 Submission of settlement proposals.

49.206-2 Basis for settlement proposals.

49.208 Equitable adjustment after partial termination.

SUBPART 49.3 — ADDITIONAL PRINCIPLES FOR COST-REIMBURSEMENT CONTRACTS TERMINATED FOR CONVENIENCE

49.303 Procedure after discontinuing vouchers.

49.303-1 Submission of settlement proposal.

49.303-4 Adjustment of indirect costs.

49.303-5 Final settlement.

49.305 Adjustment of fee.

49.305-1 General.

SUBPART 49.4 — TERMINATION FOR DEFAULT

49.402 Termination of Fixed-Price Contracts for Default.

49.402-3 Procedure for default.

SUBPART 249.70 — SPECIAL TERMINATION REQUIREMENTS

249.7001 Congressional notification on significant contract terminations.

PART 49 -- TERMINATION OF CONTRACTS

SUBPART 49.1 — GENERAL PRINCIPLES

49.101 Authorities and responsibilities.

(a) A DITCO contracting officer may terminate contracts for convenience or default to the extent of the authority provided on the Contracting Officer’s Certificate of Appointment (SF 1402). All proposed terminations shall be coordinated through legal counsel and the HCO.

49.102 Notice of termination.

(d) A DITCO Contracting Officer may reinstate a contract only after a Determination and Findings (D&F) recommending such has been approved by the cognizant HCO. The D&F must set forth the reasons why the contract was terminated and why it should now be reinstated. The D&F must be coordinated with legal counsel.

49.107 Audit of prime contract settlement proposals and subcontract settlements.

(a) The TCO shall ensure that each prime contract settlement proposal is reviewed by a DITCO Cost Analyst for the purpose of evaluating the reasonableness prior to negotiating the final settlement. A DITCO Cost Analyst shall assist the TCO in the development of a settlement negotiation position, if required. The TCO may request assistance from a DITCO Cost Analyst with respect to prime contract settlement proposals below $100,000, if the TCO believes circumstances warrants.

(c) Requests to the audit agency to perform the accounting review shall be prepared by a DITCO Cost Analyst, for signature by the TCO.

49.108 Settlement of subcontract settlement proposals.

49.108-8 Assignment of rights under subcontracts.

(a) The TCO shall submit a D&F recommending the assignment to the HCO for approval. The

D&F shall be coordinated with a DITCO Cost Analyst and legal counsel.

(b) The TCO shall not finalize any settlement proposal arising out of the termination of subcontracts until the recommendation D&F is approved by the HCO. The D&F shall be coordinated with a DITCO Cost Analyst and legal counsel.

49.109 Settlement agreements.

49.109-1 General.

The settlement agreement shall be approved by the cognizant HCO. It shall be coordinated with a DITCO Cost Analyst and legal counsel if the amount of the settlement is above $100,000.

249.109-7 Settlement by determination.

The TCO submits the determination (SF30) to the cognizant

HCO for approval. It shall be coordinated with a DITCO Cost Analyst and legal counsel.

249.110 Settlement negotiation memorandum.

The TCO shall request assistance from a DITCO Cost Analyst and legal counsel in the preparation of the settlement negotiation memorandum.

49.111 Review of proposed settlements.

The proposed settlement agreement shall be approved by the cognizant HCO. It shall be coordinated with a DITCO Cost Analyst and legal counsel.

SUBPART 49.2 — ADDITIONAL PRINCIPLES FOR FIXED-PRICE CONTRACTS TERMINATED FOR CONVENIENCE

49.202 Profit.

(a) The TCO shall coordinate the Government's proposed profit position with a DITCO Cost Analyst to ensure that it is fair and reasonable.

49.206 Settlement proposals.

49.206-1 Submission of settlement proposals.

(c) The TCO shall provide the contractor instructions regarding how to submit a settlement proposal, including which forms are to be used as related to FAR 49.206-2. The TCO shall coordinate these instructions with a DITCO Cost Analyst before forwarding them to the contractor.

SUBPART 49.3 — ADDITIONAL PRINCIPLES FOR COST-REIMBURSEMENT CONTRACTS TERMINATED FOR CONVENIENCE

49.303 Procedure after discontinuing vouchers.

49.303-4 Adjustment of indirect costs.

(a) The TCO shall coordinate with a DITCO Cost Analyst and the audit agency before determining whether or not to negotiate indirect costs into the settlement.

49.303-5 Final settlement.

(a) The settlement agreement shall be approved by the cognizant HCO. It shall be coordinated with a DITCO Cost Analyst and legal counsel.

49.305 Adjustment of fee.

49.305-1 General.

(a) The TCO shall coordinate adjustments in fee with a DITCO Cost Analyst.

SUBPART 49.4 — TERMINATION FOR DEFAULT

49.402 Termination of Fixed-Price Contracts for Default.

49.402-3 Procedure for default.

(d) Cure notices must be coordinated with legal counsel, the HCO and local OSBP

prior to release if the contractor is a small business.

(e)(1) Show cause notices must be coordinated with legal counsel, the HCO and with the local

OSBP prior to release if the contractor is a small business.

SUBPART 249.70 — SPECIAL TERMINATION REQUIREMENTS

249.7001 Congressional notification on significant contract terminations.

Contracting officer will obtain coordination from the COCO, HCO and local legal counsel, and approval from the HCA prior to the release of any termination notice being executed within the guidelines of DFARS 249.7001.

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