[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 936]

 

            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

 

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.