[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 930]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 49_TERMINATION OF CONTRACTS--Table of Contents

 

                     Subpart 49.1_General Principles

 

49.109-2  Reservations.



    (a) The TCO shall--

    (1) Reserve in the settlement agreement any rights or demands of the 

parties that are excepted from the settlement;

    (2) Ensure that the wording of the reservation does not create any 

rights for the parties beyond those in existence before execution of the 

settlement agreement;

    (3) Mark each applicable settlement agreement with ``This settlement 

agreement contains a reservation'' and retain the contract file until 

the reservation is removed;

    (4) Ensure that sufficient funds are retained to cover complete 

settlement of the reserved items; and

    (5) At the appropriate time, prepare a separate settlement of 

reserved items and include it in a separate settlement agreement.

    (b) A recommended format for settlement of reservations appears in 

49.603-9.