49.109-6
Joint settlement of two or more settlement proposals
Joint settlement of multiple contract terminations with one contractor is allowed with their consent, but requires clear documentation, proper apportionment, and distribution of agreements for each contract involved.
Overview
FAR 49.109-6 addresses the process for joint settlement of two or more termination settlement proposals submitted by the same contractor under different contracts, which may even span different contracting offices or agencies. With the contractor's consent, Termination Contracting Officers (TCOs) can negotiate these settlements together to streamline the process and consolidate accounting work. The regulation outlines specific requirements for documenting and apportioning the settlement when multiple contracts are involved, ensuring clarity and proper record-keeping across all affected contracts.
Key Rules
- Joint Negotiation with Contractor Consent
- TCOs may jointly negotiate settlements for multiple contracts with the same contractor, provided the contractor agrees.
- Consolidated Accounting
- Accounting work should be consolidated as much as practical during joint settlements.
- Settlement Agreement Requirements
- If a single agreement covers multiple contracts, it must: clearly identify all contracts, assign amendment/modification numbers, apportion the settlement amount reasonably, include a schedule of apportionment, and be distributed/attached to each contract as with other modifications.
Responsibilities
- Contracting Officers: Obtain contractor consent, ensure proper documentation, assign modification numbers, apportion settlement amounts, and distribute agreements appropriately.
- Contractors: Provide consent for joint settlement and cooperate in consolidated accounting and documentation.
- Agencies: Oversee compliance with joint settlement procedures and ensure proper record-keeping.
Practical Implications
- This section facilitates efficient resolution of multiple contract terminations with a single contractor, reducing administrative burden and potential inconsistencies. Proper documentation and apportionment are critical to avoid disputes and ensure transparency. Common pitfalls include failing to clearly identify contracts or improperly apportioning settlement amounts.