The contracting officer shall use this part as a guide in evaluating settlements of subcontracts terminated for the convenience of a contractor whenever the settlement will be the basis of a proposal for reimbursement from the Government under a cost-reimbursement contract. (b) Contractors shall use this part, unless inappropriate, to settle subcontracts terminated as a result of modification of prime contracts. However, for contracts for the acquisition of commercial products and commercial services, this part provides administrative guidance which may be followed unless it is inconsistent with the requirements and procedures in 12.403, Termination, and the clause at 52.212-4, Contract Terms and Conditions- Commercial Products and Commercial Services. See 12.403 for termination policies for contracts for the acquisition of commercial products and commercial services. (2) This part does not apply to commercial product and commercial service contracts awarded using part 12 procedures. (1) This part applies to contracts that provide for termination for the convenience of the Government or for the default of the contractor (see also 12.403 and 13.302-4).
Unsettled contract change means any contract change or contract term for which a definitive modification is required but has not been executed.
A settlement proposal is included within the generic meaning of the word " claim" under false claims acts (see 18 U.S.C.287 and 31 U.S.C.3729). Settlement proposal means a proposal for effecting settlement of a contract terminated in whole or in part, submitted by a contractor or subcontractor in the form, and supported by the data, required by this part. Settlement agreement means a written agreement in the form of a contract modification settling all or a severable portion of a settlement proposal. The final phase of the plant clearance period means that period after receipt of acceptable inventory schedules. Plant clearance period, as used in this subpart, means the period beginning on the effective date of contract completion or termination and ending 90 days (or such longer period as may be agreed to) after receipt by the contracting officer of acceptable inventory schedules for each property classification. Other work means any current or scheduled work of the contractor, whether Government or commercial, other than work related to the terminated contract.
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