[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR49]

[Page 907]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 49_TERMINATION OF CONTRACTS--Table of Contents
 
Sec.  49.002  Applicability.

    (a) This part applies to contracts that provide for termination for 
the convenience of the Government or for the default of the contractor 
(see also 13.302-4).
    (b) Contractors shall use this part, unless inappropriate, to settle 
subcontracts terminated as a result of modification 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 from the Government under a cost-reimbursement contract.
    (c) The contracting officer may use this part in determining an 
equitable adjustment resulting from a modification under the Changes 
clause of any contract, except cost-reimbursement contracts.
    (d) When action to be taken or authority to be exercised under this 
part depends upon the amount of the settlement proposal, that amount 
shall be determined by deducting from the gross settlement proposed the 
amounts payable 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 not be deducted.

[48 FR 42447, Sept. 19, 1983, as amended at 62 FR 64927, Dec. 9, 1997]