FAR 49.109-4 No-cost settlement

Subsection Federal Acquisition Regulation

Facts

Citation
FAR 49.109-4
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

The TCO shall execute a no-cost settlement agreement (see 49.603-6 or 49.603-7, as applicable) if-

(a) The contractor has not incurred costs for the terminated portion of the contract or

(b) The contractor is willing to waive the costs incurred and

(c) No amounts are due the Government under the contract.

Proposed changes

Proposed rule Published Comments
Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 91 FR 37698 · FAR Case 2026-007, Docket No. FAR-2026-0007, Sequence No. 1 Closed Jul 23, 2026No final rule found

Sections cited

  • FAR 49.603-6 No-cost settlement agreement-complete termination
  • FAR 49.603-7 No-cost settlement agreement-partial termination

Quick answers

What is FAR 49.109-4?

FAR 49.109-4 is a subsection of the Federal Acquisition Regulation, titled "No-cost settlement".

Are changes to FAR 49.109-4 proposed?

One proposed change has no final rule yet.

On GovTribe

Follow the rules behind federal contracts

  • Search Federal Register rules and proposed rules for the FAR, DFARS and agency supplements
  • Solicitations, awards and government files in one search
  • Ask GovTribe AI about the rules that apply to a contract