[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 921]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 49_TERMINATION OF CONTRACTS--Table of Contents
 
Subpart 49.2_Additional Principles for Fixed-Price Contracts Terminated 
                             for Convenience
 
Sec.  49.204  Deductions.

    From the amount payable to the contractor under a settlement, the 
TCO shall deduct--
    (a) The agreed price for any part of the termination inventory 
purchased or retained by the contractor, and the proceeds from any 
materials sold that have not been paid or credited to the Government;
    (b) The fair value, as determined by the TCO, of any part of the 
termination inventory that, before transfer of title to the Government 
or to a buyer under part 45, is destroyed, lost, stolen, or so damaged 
as to become undeliverable (normal spoilage is excepted, as is inventory 
for which the Government has expressly assumed the risk of loss); and
    (c) Any other amounts as appropriate in the particular case.