Federal Acquisition Regulation

General

FAR 49.304-1

(a) In a partial termination, the TCO shall limit the settlement to an adjustment of the fee, if any, and with the concurrence of the contracting office to a reduction in the estimated cost. The TCO shall adjust the fee as provided in 49.304-2 and Adjustment of fee (FAR 49.305) , unless- (1) The terminated portion is clearly severable from the balance of the contract; or (2) Performance of the contract is virtually complete, or performance of any continued portion is only on subsidiary items or spare parts, or is otherwise not substantial. (b) In the case of the exceptions in paragraph (a), the procedures in Discontinuance of vouchers (FAR 49.302) and Procedure after discontinuing vouchers (FAR 49.303) apply.

Record identifier

49.304-1