Federal Acquisition Regulation
Methods of settlement
FAR 49.103
Settlement of terminated cost-reimbursement contracts and fixed-price contracts terminated for convenience may be effected by (a) negotiated agreement, (b) determination by the TCO, (c) costing-out under vouchers using SF 1034 , Public Voucher for Purchases and Services Other Than Personal, for cost-reimbursement contracts (as prescribed in subpart Additional Principles for Cost-Reimbursement Contracts Terminated for Convenience (FAR 49.3) ), or (d) a combination of these methods. When possible, the TCO should negotiate a fair and prompt settlement with the contractor. The TCO shall settle a settlement proposal by determination only when it cannot be settled by agreement.
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