49.303
Procedure after discontinuing vouchers
FAR 49.303 establishes a step-by-step process for settling cost-reimbursement contracts terminated for convenience, ensuring all costs and property are properly accounted for before final settlement.
Overview
FAR 49.303 outlines the required procedures for contractors and contracting officers after discontinuing the submission of vouchers following the termination of a cost-reimbursement contract for convenience. This section details the steps for submitting a settlement proposal, inventory disposal schedules, conducting audits, adjusting indirect costs, and finalizing the settlement. The regulation ensures that all financial and property matters are properly resolved after contract termination, protecting both government and contractor interests.
Key Rules
- Submission of Settlement Proposal
- Contractors must submit a settlement proposal detailing costs incurred and anticipated as a result of the termination.
- Submission of Inventory Disposal Schedules
- Contractors are required to provide schedules for the disposal of inventory acquired under the contract.
- Audit of Settlement Proposal
- The settlement proposal is subject to audit to verify the accuracy and allowability of claimed costs.
- Adjustment of Indirect Costs
- Indirect costs must be adjusted as necessary to reflect the termination and actual costs incurred.
- Final Settlement
- A final settlement is reached once all costs, inventory, and audit issues are resolved.
Responsibilities
- Contracting Officers: Oversee the submission and review of settlement proposals, ensure audits are conducted, and finalize settlements.
- Contractors: Submit timely and accurate settlement proposals and inventory schedules, cooperate with audits, and adjust indirect costs as required.
- Agencies: Ensure compliance with procedures and safeguard government interests during settlement.
Practical Implications
- This section exists to provide a clear, orderly process for closing out cost-reimbursement contracts terminated for convenience.
- It impacts daily contracting by requiring prompt and thorough documentation, coordination with auditors, and careful cost accounting.
- Common pitfalls include late or incomplete submissions, inadequate inventory records, and disputes over indirect cost adjustments.