Overview
This section prescribes the mandatory Standard Forms (SF) used by contractors and the government during contract termination proceedings to document settlement proposals, accounting information, and inventory disposal. It serves as a regulatory bridge between the administrative requirements of FAR Part 53 and the substantive termination procedures outlined in FAR Part 49.
Key Rules
- Settlement Proposal Forms: Specific forms are required based on the settlement method:
- SF 1435: Inventory Basis.
- SF 1436: Total Cost Basis.
- SF 1437: Cost-Reimbursement contracts.
- SF 1438: Short Form (for smaller or less complex settlements).
- Supporting Documentation: SF 1439 (Schedule of Accounting Information) and SF 1440 (Application for Partial Payment) are prescribed for the financial administration of the termination.
- Inventory Disposal: SF 1428 and SF 1429 must be used to schedule and support the disposal of inventory related to the termination settlement.
- Reproduction Policy: Most forms are authorized for local reproduction by the user, with the notable exception of SF 1034.
- Accessibility: All prescribed forms are maintained and made available through the GSA Forms Library.
Practical Implications
- Standardization of Claims: Contractors must ensure they use the correct version of these forms to submit termination claims; using the wrong settlement form (e.g., using a Total Cost Basis form when an Inventory Basis is required) can lead to significant delays in settlement negotiations.
- Audit Readiness: Because these forms link directly to the requirements in FAR Subpart 49.6, they provide the standardized data structure that Government Termination Contracting Officers (TCOs) and auditors (such as DCAA) use to verify the validity of a contractor’s termination costs.