49.114
Unsettled contract changes
All unsettled contract changes must be identified and resolved as part of the final settlement process when a contract is terminated, ensuring no outstanding issues remain.
Overview
FAR 49.114 addresses the handling of unsettled contract changes in the context of contract terminations. It outlines the responsibilities of the Termination Contracting Officer (TCO) and the contracting office in identifying and settling any contract changes that remain unresolved at the time of termination. For completely terminated contracts, the TCO must obtain a list of all unsettled changes from the contracting office and include them in the final settlement, considering the contracting office's recommendations. For partially terminated contracts, unsettled changes are typically managed by the contracting officer, but this responsibility can be delegated to the TCO if needed.
Key Rules
- Completely Terminated Contracts
- The TCO must obtain a list of all unsettled contract changes from the contracting office and settle them as part of the final settlement, after consulting with the contracting office.
- Partially Terminated Contracts
- The contracting officer usually handles unsettled contract changes, but may delegate this responsibility to the TCO.
Responsibilities
- Contracting Officers: Provide the TCO with a list of unsettled contract changes for completely terminated contracts; handle unsettled changes for partially terminated contracts unless delegated.
- TCOs: Settle all unsettled contract changes as part of the final settlement for completely terminated contracts; may be delegated responsibility for unsettled changes in partially terminated contracts.
- Agencies: Ensure proper coordination and documentation between the contracting office and TCO.
Practical Implications
- This section ensures that all contract changes are addressed and settled before finalizing a contract termination, preventing future disputes or claims. Contractors should be aware that all outstanding changes will be resolved as part of the termination process, and should maintain clear records of any pending changes to facilitate settlement.