FAR Companion Part 49

Part 49 - Termination of Contracts

FC49.002 FC 49.002 Termination of commercial products or services contracts awarded under FAR

part 12 or contracts awarded under FAR part 13. FAR part 49 does not apply to contracts for commercial products or commercial services awarded under FAR part 12. While FAR part 49 can be used as guidance, the procedures for termination for the government’s convenience and termination for cause are provided under FAR 12.403 and FAR 52.212-4(l) or (m) for commercial products and commercial services; or FAR 52.213-4(f) or (g) for simplified acquisitions for other than commercial products and commercial services.

FC49.1 FC 49.1 Use of the cost principles.

The cost principles and procedures in the applicable subpart of FAR part 31 should, subject to the general principles in FAR 49.201, be used to assert, negotiate, or determine costs relevant to termination settlements under contracts with other than educational institutions. They should also be a guide for negotiating settlements under contracts for experimental, developmental, or research work with educational institutions ( see FAR 31.104).

FC49.108-2(c) Federal Acquisition Regulation (FAR) Companion FC 49.108-2(c) Government assistance in settling subcontracts.

In unusual cases, the termination contracting officer (TCO) may determine, with the consent of the prime contractor, that it is in the government’s interest to assist the prime contractor with settling a particular subcontract. In these situations, the government, the prime contractor, and a subcontractor may enter into an agreement covering the settlement of one or more subcontracts. In these settlements, the subcontractor is paid through the prime contractor as part of the overall settlement with the prime contractor.

FC49.404 FC 49.404 Completion by another contractor.

If the surety does not arrange for completion of the contract, the contracting officer may arrange for completion of the work by awarding a new contract based on the same plans and specifications. The new contract may be awarded by using any appropriate contracting method or procedure. Federal Acquisition Regulation (FAR) Companion