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DFARS 249



Part 249-Termination of Contracts

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 249.5--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.

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.

3. Termination notice.

4. Contractor's settlement proposal.

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

Prepare a summary substantially as follows:

Item

Claimed

Contractor's Proposal

Dollars Accepted

Costs Questioned

Unresolved Items

TCO Negotiated 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

         

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.

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

 

Amount

Amount

 

Claimed

Allowed

    Prime contractors charges (before disposal credits)

   

    Plus: Subcontractor charges (after disposal credits)

   

    Gross settlement:

   
 

Less: disposal credits--Prime

   

    Net settlement--Less:

   
 

Prior payment credits (this settlement)

   
 

Previous partial settlements

   
 

Other credits or deductions

   

    Net payment:

   
 

Total contract price (complete termination)

   
 

Contract Price of Items Terminated (for partial termination)--Less:

   
 

Total payments to date

   
 

Net payment from this settlement

   
 

Fund reserved for reservations

   

    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

1. Summary. Summarize the proposed settlement in tabular form substantially as shown in Tables 49-3 and 49-4. Partial settlements may be summarized on

Table 49-4.

2. Comments. Explain tabular summaries.

(End of memorandum)

TABLE 49-3, SUMMARY OF SETTLEMENT

 

AMOUNT CLAIMED

AMOUNT ALLOWED

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

___________

____________

 

$___________

$___________

 

___________

___________

    Less: Deductions not reflected in Items 1-7

   
 

a. Disposal credits

$_______

   
 

b. Other charges against contractor

     
 

    arising from contract

$_______

   

8. Net settlement

 

$

 

Less: Prior payment credits

 

___________

9. Net payment

 

$

10. Recapitulation of previous settlements (insert

    number of previous partial settlements effected on

    account of this particular termination):

   
 

Aggregate gross amount of previous settlements

$__________

 

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*

 

Amounts claimed by

Auditor's Recommendation

 

Costs

contractor's

Cost

Unresolved

TCO's

 

proposal

Questioned

Items

Computation

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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