49.602-3
Schedule of accounting information
Contractors must submit Standard Form 1439 with settlement proposals for terminated contracts unless using the short form (SF 1438), ensuring proper accounting support for settlements.
Overview
FAR 49.602-3 requires contractors to submit Standard Form 1439, Schedule of Accounting Information, as supporting documentation for a settlement proposal following contract termination, unless the proposal is submitted using Standard Form 1438 (Short Form). This requirement ensures that adequate accounting data is provided to support the settlement process, facilitating accurate and fair resolution of terminated contracts. The regulation references FAR 49.206-1(e) for exceptions when the short form may be used, typically for smaller or less complex settlements.
Key Rules
- Submission of SF 1439
- Contractors must file Standard Form 1439 with their settlement proposal unless using SF 1438.
- Exception for Short Form Proposals
- If the settlement proposal is filed on SF 1438 (Short Form), SF 1439 is not required.
Responsibilities
- Contracting Officers: Ensure contractors submit the correct forms and supporting documentation for settlement proposals.
- Contractors: Submit SF 1439 with settlement proposals unless using SF 1438; ensure all accounting information is accurate and complete.
- Agencies: Review submitted forms for compliance and completeness during the settlement process.
Practical Implications
- This section ensures transparency and accountability in the settlement of terminated contracts by requiring detailed accounting information.
- Contractors must be diligent in preparing and submitting the correct forms to avoid delays or rejections in the settlement process.
- Common pitfalls include submitting incomplete accounting information or using the wrong form, which can hinder timely contract closeout.