Overview
FAR 49.111 dictates that federal agencies must establish internal administrative procedures for reviewing proposed termination settlements to ensure oversight and consistency. It also specifies that the agency actually performing the settlement services is responsible for the review, even if they are acting on behalf of another agency.
Key Rules
- Mandatory Procedures: Each agency is required to create formal procedures for the administrative review of termination settlements whenever such reviews are deemed necessary.
- Delegated Authority: When one agency (the servicing agency) handles termination settlement services for another (the requesting agency), the servicing agency must also perform the settlement review function.
- Administrative Oversight: The section emphasizes that the review is an administrative function intended to validate the proposed settlement before finalization.
Practical Implications
- Internal Compliance: Contractors should anticipate that a settlement reached with a Termination Contracting Officer (TCO) may be subject to a secondary internal board or administrative review before it becomes final.
- Streamlined Interagency Support: In cases where organizations like DCMA provide settlement services for other military branches, the contractor only needs to navigate the review process of the servicing agency, avoiding redundant reviews by the funding agency.