49.111
Review of proposed settlements
Agencies must establish and follow procedures for reviewing proposed termination settlements, including when providing services for other agencies.
Overview
FAR 49.111 requires each federal agency to establish procedures for the administrative review of proposed termination settlements when necessary. This ensures that settlements resulting from contract terminations are properly evaluated and approved according to agency-specific processes. Additionally, if one agency provides termination settlement services on behalf of another, the servicing agency is responsible for conducting the settlement review as well. The regulation aims to maintain oversight and consistency in the settlement process across agencies.
Key Rules
- Agency Review Procedures
- Agencies must create procedures for reviewing proposed termination settlements when needed.
- Cross-Agency Services
- If an agency handles settlement services for another, it must also perform the review function for those settlements.
Responsibilities
- Contracting Officers: Ensure proposed settlements are submitted for administrative review per agency procedures.
- Contractors: Submit all required documentation for settlement review as directed by the contracting officer or agency.
- Agencies: Develop, implement, and follow procedures for reviewing proposed settlements, including when acting on behalf of another agency.
Practical Implications
- This section ensures that all proposed termination settlements undergo appropriate scrutiny, reducing the risk of improper or unsupported settlements.
- Contractors should be prepared for possible additional review steps and documentation requirements.
- Agencies must coordinate effectively when providing services for others to ensure compliance with review obligations.