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TERMINATION OF CONTRACTS

6. Progress or Advance Payments. Furnish 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 thereof. 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 all plant clearance action has been complete 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 clearance. Consolidated closing plant clearance report is attached. 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 Sumbary for Complete or Partial Termlaation

Ainoant
Oleme

Primer Contractor's Charru (beforo dopool credita)
Phew: Subcontractor cbarston (after dloponal cratite)
Grow Settlement
L : Dlaposal Credito Primo

O
Net Sottlement
Les: Prior Payment Credito (This Settlement)

Previous Partial Gottlom.cata
Other Crodio or Deductions

Total
Not Payment
Total Contract Proe (Completo Termination)

CPIT (for partial termination)
Lope: Total Payments to dato

Not Payment from the Settleme
and Reserved for Reservations
Final Contract Price (Terminated Portion for partial

termination) ludaction in Cost Price 14. Exclusions. Describe any proposed reservation of rights to the Government or to the contractor.

1.1.I JIU JI!

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PART V-RECOMMENDATION

1. Recommendation. Include statement as to the amount of the gross settlement and recommendation that it is fair and reasonable to the Government and the contractor. 2. Signature. The Contracting Officer will sign and date the memorandum.

(End of Memorandum)

8-809 Format for Termination Contracting Officer's Settlement Memorandum for Cost-Reimbursement Type Contracts. This memorandum shall be addressed to a reviewing authority or the file in accordance with 8-211. This format may be appropriately modified and used to cover subcontract settlements.

PART 1-GENERAL INFORMATION

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

a. Name and address of the contractor. Comment on any pertinent affiliation between prime and subcontractors relative to the overall settlement.

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TERMINATION OF CONTRACTS

b. Names and titles of contractor and Government personnel who participated in the negotiation. 2. Description of Terminated Contract.

a. Date of contract and contract number.
b. Type of contract.
c. General description of contract items.
d. State total contract cost and fee data if complete termination.

e. Furnish reference to the contract termination provisions (cite ASPR ............ or other special provisions). 3. Termination Notice.

a. Reference termination notice and state effective date of termination.

b. Scope and nature of termination (complete or partial, items terminated, estimated costs and fee data applicable to items terminated).

c. State whether termination notice was amended, and if so, explain.

d. Explain scope of the settlement as to whether settlement concerns fee only or whether costs are also included.

PART I-CONTRACTOR'S SETTLEMENT PROPOSAL 1. Date and Amount. Indicate date and location where claim was filed. State gross amount of claim. (If interim settlement proposals were filed, furnish information for each claim.) 2. Examination of Proposal. State type of reviews made and by whom (audit, engineering, legal, or other).

PART III-TABULAR SUMMARY OF SETTLEMENT 1. Summary. Summarize the proposed settlement in tabular form substantially as shown in Attachments A and B. Partial settlements may be summarized on Attachment B. 2. Comments. Furnish comments in amplification of tabular summaries. a. Summary of Final Settlement (see Attachment A).

(1) If the auditor's final report was not available for consideration, state the circum

stances. (2) Explain how the fixed fee was adjusted. Identify basis used, such as percentage of

completion. Include a description of factors considered and how they were considered. Include any tabular summaries and breakdowns deemed helpful to an understanding of the process. Factors which may be given consideration are outlined in

8-406. (3) Briefly identify matters included in liability for property and other charges against

the contractor arising from the contract. (4) Identify reservations included in the settlement that are other than standard reserva.

tions required by regulations and which are concerned with pending claims and

refunds. (5) Explain substantial or otherwise important adjustments made in cost figures sub

mitted by the contractor in arriving at the proposed settlement. (6) If unreimbursed costs were settled on a lump sum basis, explain the general basis for

and the major factors considered in arriving at this settlement. (7) Comment on an unusual items of cost included in the claim and on any phase of cost

allocation requiring particular attention and not covered above. (8) If auditor's recommendations for nonacceptance were not followed, explain briefly

the main reasons why such recommendations were not followed. (9) On items recommended for further consideration by the auditor, explain, in general,

the basis for the action taken thereon. (10) If any cost previously disallowed by a contracting officer is included in the proposed

settlement, identify and explain the reason for inclusion of such costs. (11) Show settlements with subcontractors by breakdown as follows:

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UREMENT REGULATION

TERMINATION OF CONTRACTS

Number Total Dollar
Scttlements Amount

Approved by Termination Contracting Officer -
Concluded by contractor under delegation of authority.
No Cost Settlements .......

Total ....

(12) The following summary will be followed where settlement includes costs and fixed

fec in a complete termination.
Gross Settlement --

Less: Disposal credits
Net Settlement ---
Less: Prior Payments -------

Other credits or deductions

Total -----------
Net Payment ---
Total contract estimated cost plus Axed fee ----
Less: Net settlement ---

Estimated reserve for

exclusions --------
Final contract price

(Consisting of R
for reimbursement of
costs and

for adjusted fixed fee) ------Roduction in contract price (credit) ---(13) Planı Clearance. Indicate dollar value of termination inventory and state whether

plant clearance has been completed. Attach consolidated plant clearancc report (DD

Form 1636. Inventory Disposal Report). (14) Government Property. State whether all Government property has been accounted

for.

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TERMINATION OF CONTRACTS

PART IV-RECOMMENDATION 1. Recommendation. Set forth the amount of the proposed segotiated settlement and make recommendation that the settlement is fair and reasonable to the Government and the contractor and as such should be approved. 2. Signature. The termination contracting officer and negotiator will sign and date the memorandum

SUMMARY OP SETTLEMENT-COST TYPE CONTRACT

Contract No.
Termination No.

Amount
Claimed

Amount
Allowed

1. Previous Reimbursed CostsPrime and Subs ---
2. Previous Unreimbursed Costs ---
8. Total Cost Settlement ----
4. Previous Fees Paid-Prime
6. Previous Fees Unpaid-Prime
6. Total Fee Settlement ----------
7. Gross Settlement ----

Lens: 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 setttlements
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 Govern-
ment in connection with previous partial
sottlements ------

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*Expand the format to include recommendations of technical personnel as required.

ATTACHMENT B
(Ead of Memorandum)

8-810 Format for Application for Grant of Authorization.

APPLICATION FOR GRANT OF AUTHORIZATION (a) Name of contractor. (b) Address of the principal office of the contractor. (c) Name and location of divisions of the applicant's plant for which authorization requested. (d) An explanation of the necessity and justification for the authorization requested.

(e) A full description of the applicant's organization for handling terminations, including the names of the officials in charge of processing and settling claims.

(f) The number and dollar amount (estimated if necessary) of uncompleted contracts with Government contracting agencies and the percentage thereof applicable to cach Department.

(g) The number and dollar amount (estimated if necessary) of uncompleted subcontracts under Government contracts and the percentage thereof applicable to cach Department.

(h) The extent of the applicant's experience in termination matters, including the handling of claims of subcontractors.

(i) The approximate amount and general nature of termination of the applicant currently in process.

(j) A statement that no other such application has been made for any division of the applicant's plant covered by the application; or, if one has been made, a full statement of the facts.

(k) The limits of authorization requested.

8_810.1 Format of Letter of Authorization.

LETTER OF AUTHORIZATION (a) In consideration of your written request of (Date) and pursuant to paragraph 8–209.4 of the Armed Services Procurement Regulation (ASPR), you are authorized, subject to the limita

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