FAR 49.109-2 Reservations
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 49.109-2
- Type
- Subsection
- Proposed changes
- 1
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) The TCO shall-
(1) Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;
(2) Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;
(3) Mark each applicable settlement agreement with "This settlement agreement contains a reservation" and retain the contract file until the reservation is removed;
(4) Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and
(5) At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.
(b) A recommended format for settlement of reservations appears in 49.603-9.
Proposed changes
| Proposed rule | Published | Comments |
|---|---|---|
| Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 | Closed Jul 23, 2026No final rule found |
Sections cited
- FAR 49.603-9 Settlement of reservations
Quick answers
What is FAR 49.109-2?
FAR 49.109-2 is a subsection of the Federal Acquisition Regulation, titled "Reservations".
Are changes to FAR 49.109-2 proposed?
One proposed change has no final rule yet.
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