49.302
Discontinuance of vouchers
Contractors must discontinue voucher submissions within six months of contract termination and submit all final costs and fee proposals within one year to ensure proper settlement.
Overview
FAR 49.302 outlines the procedures for discontinuing the use of vouchers after a cost-reimbursement contract has been terminated, either completely or partially, for convenience. It sets clear deadlines for when contractors must stop submitting Standard Form 1034 (Public Voucher) and provides guidance on submitting final cost and fee proposals. The regulation ensures that all costs and fees are properly accounted for and submitted within specified timeframes to facilitate contract closeout and settlement.
Key Rules
- Voucher Discontinuance Deadline
- Contractors must stop using SF 1034 no later than six months after the month in which the contract termination is effective, but may choose to stop earlier.
- Submission of Final Fee Proposal
- After all costs are vouchered within the six-month period, contractors may submit a fee proposal using SF 1437 or a certified letter, and must do so within one year of the termination date unless extended by the Termination Contracting Officer (TCO).
- Unvouchered Costs and Fee Submission
- When vouchers are discontinued, all remaining unvouchered costs and any proposed fee must be submitted as specified in FAR 49.303.
- Partial Terminations
- For partial terminations, the procedures in FAR 49.304 apply.
Responsibilities
- Contracting Officers (TCO): Monitor deadlines, grant extensions if justified, and ensure proper submission of final proposals.
- Contractors: Cease voucher use within the prescribed period, submit substantiated fee proposals, and report all unvouchered costs and fees as required.
- Agencies: Oversee compliance and facilitate contract closeout.
Practical Implications
- This section ensures timely and orderly financial closeout of terminated contracts, reducing risk of delayed settlements.
- Contractors must track deadlines closely to avoid forfeiting fee claims or failing to report costs.
- Common pitfalls include missing the six-month or one-year deadlines, or failing to properly certify fee proposals.