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.
a. Summary of final settlement (see Table 49-3).
(1) Explain why the auditor's final report was not available for consideration, if applicable.
(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 that may be given consideration are outlined in FAR 49.305.
(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 reservations required by regulations and that are concerned with pending claims and refunds.
(5) Explain substantial or otherwise important adjustments made in cost figures submitted 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 any unusual items of cost included in the claim and on any phase of cost allocation requiring particular attention and not covered above.
(8) If the 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.
(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 number and amounts of settlements with subcontractors.
(12) Use the following summary where settlement includes costs and fixed-fee in a complete termination:
Gross settlement Less: Disposal credits | $________ | |
Net settlement Less: Prior payments | _________ |
|
Total Net payment | _________ | |
Total contract estimated cost plus fixed fee Less: Net settlement | _________ |
|
Reduction in contract price (credit) | _________ | _________ |
(13) Plant clearance. Indicate dollar value of termination inventory and state whether plant clearance has been completer. Attach consolidated plant clearance report (SF 1424, Inventory Disposal Report).
(14) Government property. State whether all Government property has been accounted for.
(15) Include a statement that the settlement is fair and reasonable to the Government and the contractor. The contracting officer shall sign and date memorandum.