DFARS Part 49

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TABLE OF CONTENTS

SUBPART 249.1--GENERAL PRINCIPLES
249.105 Duties of termination contracting officer after issuance of notice of termination.
249.105-1 Termination status report.
249.105-2 Release of excess funds.
249.108 Settlement of subcontract settlement proposals.
249.108-4 Authorization for subcontract settlements without approval or ratification.
249.109 Settlement agreements.
249.109-7 Settlement by determination.
249.110 Negotiation memorandum.

SUBPART 249--CONTRACT TERMINATION CLAUSES
249.501 General.
249.501-70 Special termination costs.

SUBPART 249.70--SPECIAL TERMINATION REQUIREMENTS
249.7000 Terminated contracts with Canadian Commercial Corporation.
249.7001 Congressional notification on significant contract terminations.
249.7002 Reserved.
249.7003 Notification of proposed program terminations or reductions.

DAC 91-12

PART 249 TERMINATION OF CONTRACTS

SUBPART 249.1--GENERAL PRINCIPLES

249.105 Duties of termination contracting officer after issuance of notice of termination.

249.105-1 Termination status report.
When the contract administration office receives a termination notice, it will under Report Control Symbol DD-ACQ (AR) 1411.

249.105-2 Release of excess funds.
The DD Form 1598, Contract Termination Status Report, may be used to recommend the release of excess funds. The final recommendation to release excess funds should include the appropriations and allocated amounts.

249.108 Settlement of subcontract settlement proposals.

249.108-4 Authorization for subcontract settlements without approval or ratification.

249.109 Settlement agreements.

249.109-7 Settlement by determination.

249.110 Negotiation memorandum.

TABLE 49-1, SETTLEMENT MEMORANDUM-FIXED PRICE CONTRACTS

PART I--GENERAL INFORMATION

1. Identification. (Identify memorandum as to its purpose and content.)

2. Description of terminated contract.


c. General description of contract items.


TABLE 49-1, Continued

3. Termination notice.

4. Contractor's settlement proposal.


TABLE 49-1, Continued

PART II--SUMMARY OF CONTRACTOR'S
CLAIM AND NEGOTIATED SETTLEMENT

Prepare a summary substantially as follows:

Item Contractor's Dollars Costs Unresolved Negotiated
Claimed Proposal Accepted Questioned Items Amount

1. Contractor's
costs as set
forth on
settlement
proposal.
Metals, raw
materials, etc.
Total
2. Profit
3. Settlement
expenses
4. Total
5. Settlement
with subs
6. Acceptable
finished
product
7. Gross Total
8. Disposal and
other credits
9. Net settlement
10. Partial,
progress &
advance payments
11. Net payments
requested


TABLE 49-1, Continued

PART III--DISCUSSION OF SETTLEMENT

1. Contractor's cost.

2. Profit. Explain the basis and factors considered in arriving at a fair profit.

3. Settlement expenses. Comment on and summarize those expenses not included in the audit review.

4. Subcontractor's settlements. Include the number of no costs settlements, settlements concluded by the contractor under delegation of authority and those approved by the termination contracting officer, as well as the net amount of each.

5. Partial payments. Furnish the total amount of partial payments, if any.

6. Progress or advance payments. Furnish the total of unliquidated amounts, if any.

7. Claims of the Government against the contractor included in settlement agreement reservations. List all outstanding claims, if any, which the Government has against the contractor in connection with the terminated contract or terminated portion of the contract.

8. Assignments. List any assignments, giving name and address of assignee.

9. Disposal credits. Furnish information as to applicable disposal credits and give dollar amounts of all disposal credits.

TABLE 49-1, Continued

10. Plant clearance. State whether plant clearance action has been completed and all inventory sold, retained, or otherwise properly disposed of in accordance with applicable plant clearance regulations. Comment on any unusual matters pertaining to plant clearances. Attach consolidated closing plant clearance report.
11. Government property. State whether all Government property has been accounted for.

12. Special tooling. If involved, furnish comment on disposition.

13. Summary of settlement. Summarize the settlement in tabular form substantially as follows:

TABULAR SUMMARY FOR COMPLETE OR PARTIAL TERMINATION

Prime contractors charges (before disposal credits)

Plus: Subcontractor charges (after disposal credits)

Gross settlement:

Net settlement

Net payment

Total contract price (complete termination)

Reduction in contract price

14. Exclusions. Describe any proposed reservation of rights to the Government or to the contractor.

15. Include statement that the settlement is fair and reasonable for the Government and the contractor. The contracting officer shall sign and date the memorandum.

(End of memorandum)


TABLE 49-2, SETTLEMENT MEMORANDUM FOR COST-REIMBURSEMENT CONTRACTS

PART II--SUMMARY OF SETTLEMENT


TABLE 49-2, Continued

Total _______

Net payment $_______

Total contract estimated cost plus fixed fee _______

Reduction in contract price (credit) _______

(End of memorandum)


TABLE 49-3, SUMMARY OF SETTLEMENT

1. Previous reimbursed costs--Prime and Subs $ $
2. Previous unreimbursed costs _______ ______
3. Total cost settlement $ $
4. Previous fees paid--Prime $ $
5. Previous fees unpaid--Prime ________ ______
6. Total fee settlement $ $
7. Gross settlement ________ ______

8. Net settlement $

9. Net payment
10. Recapitulation of previous settlements (insert number of previous

Aggregate net amount of previous partial settlements $_____
Aggregate net payment provided in previous partial $_____
settlements
Aggregate amount allowed for prime contractor acquired
property taken over by the Government in connection with
previous partial settlements $_____


TABLE 49-4, UNREIMBURSED COSTS SUBMITTED ON SF 1437*

Costs Amounts claimed Auditor's Recommendation TCO's

proposal Questioned Items

1. Direct material
2. Direct labor
3. Indirect factory expense
4. Dies, jigs, fixtures and special tools
5. Other costs
6. General and administrative expenses
7. Fee
8. Settlement expense
9. Settlement with subs
_________________________________
10. Total costs (Items 1-9)
_________________________________
*Expand the format to include recommendations of technical personnel as required.

SUBPART 249.5--CONTRACT TERMINATION CLAUSES

249.501 General.

249.501-70 Special termination costs.

SUBPART 249.70--SPECIAL TERMINATION REQUIREMENTS

249.7000 Terminated contracts with Canadian Commercial Corporation.

249.7001 Congressional notification on significant contract terminations.

249.7002 Reserved.

249.7003 Notification of anticipated contract terminations or reductions.

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