[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR49]



[Page 922]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 49_TERMINATION OF CONTRACTS--Table of Contents

 

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]