49.304
Procedure for partial termination
FAR 49.304 provides specific procedures for settling cost-reimbursement contracts that are only partially terminated for convenience, ensuring fair and orderly resolution of the terminated portion.
Overview
FAR 49.304 outlines the procedures to follow when a cost-reimbursement contract is partially terminated for convenience. This section provides guidance on the general process, submission of settlement proposals (specifically for fee only), and the submission of vouchers. It ensures that both contracting officers and contractors understand the steps required to settle the terminated portion of the contract while continuing performance on the remaining portion. The regulation aims to facilitate fair and efficient settlements and maintain compliance with government contracting requirements.
Key Rules
- General Procedures
- Establishes the overall process for handling partial terminations under cost-reimbursement contracts.
- Submission of Settlement Proposal (Fee Only)
- Details how contractors should submit proposals when only the fee portion is affected by the termination.
- Submission of Vouchers
- Outlines requirements for submitting vouchers for costs incurred up to the effective date of termination.
Responsibilities
- Contracting Officers: Must guide contractors through the partial termination process, review settlement proposals, and ensure proper documentation.
- Contractors: Must submit accurate settlement proposals and vouchers as required, and continue performance on the non-terminated portion of the contract.
- Agencies: Oversee compliance and ensure settlements are processed in accordance with FAR requirements.
Practical Implications
- This section exists to clarify the unique procedures for partial terminations, which differ from full terminations.
- It impacts daily contracting by requiring careful documentation and timely submission of proposals and vouchers.
- Common pitfalls include incomplete submissions, misunderstanding fee-only settlements, and failing to distinguish between terminated and continuing work.