Overview
This section prescribes the procedures for identifying and resolving outstanding contract changes during the termination settlement process to ensure all financial obligations are captured.
Key Rules
- Complete Terminations: The Termination Contracting Officer (TCO) must obtain a list of all unsettled changes from the contracting office and incorporate their resolution into the final settlement agreement.
- Coordination: Before settling changes in a complete termination, the TCO must obtain and consider the recommendations of the contracting office.
- Partial Terminations: Responsibility for unsettled changes typically remains with the primary contracting officer rather than the TCO.
- Delegation: In partial terminations, the contracting officer has the discretion to delegate the authority to settle outstanding changes to the TCO.
Practical Implications
- Administrative Efficiency: Consolidating unsettled changes into the final settlement of a completely terminated contract prevents "piecemeal" litigation or supplemental claims after the contract is closed.
- Role Clarity: Contractors must identify which official (the PCO or the TCO) has the authority to negotiate specific changes depending on whether the termination is total or partial.