FAR 53.249—Termination of contracts.
Plain-English Summary
FAR 53.249 identifies the standard forms used when a contract is terminated and the parties must prepare, support, and process a termination settlement. It covers the prescribed forms for termination-related actions under subpart 49.6, including SF 1034, SF 1435, SF 1436, SF 1437, SF 1438, SF 1439, and SF 1440, and it also requires use of SF 1428 and SF 1429 to support termination settlement proposals as directed by FAR 49.602-2. In practice, this section matters because termination settlements depend on consistent documentation, standardized cost and inventory reporting, and proper submission formats so the government can evaluate claims efficiently and fairly. It also points users to the GSA Forms Library and notes that the listed forms may be locally reproduced, with the specific exception of SF 1034. For contractors, this means the form type must match the contract type and settlement basis; for contracting officers and settlement personnel, it means the correct forms must be required and reviewed to avoid delays, unsupported costs, or defective submissions.
Key Rules
Use prescribed termination forms
The section lists the official forms to be used in connection with contract termination under subpart 49.6. These forms are not optional when the applicable FAR provisions call for them; they are the standard vehicles for submitting and processing termination settlement information.
Match form to settlement type
Different forms apply to different settlement methods and contract types, such as inventory basis, total cost basis, cost-reimbursement contracts, short-form settlements, accounting information, and partial payment requests. The correct form must be selected based on the specific termination and the related FAR citation.
Use inventory support forms
SF 1428 and SF 1429 must be used to support termination settlement proposals when required by FAR 49.602-2. These forms document inventory disposal information and continuation details needed to substantiate the settlement proposal.
Forms are available from GSA
The prescribed forms are available through the GSA Forms Library. This ensures parties use current versions and can access the forms needed for termination processing.
Local reproduction is generally allowed
The listed forms may be locally reproduced, which gives agencies and contractors flexibility in obtaining and using them. SF 1034 is the exception and is not authorized for local reproduction under this section.
Responsibilities
Contracting Officer
Ensure the correct termination-related forms are used in accordance with subpart 49.6 and the cited FAR provisions. The contracting officer must direct or review settlement submissions using the proper form set and verify that required supporting schedules and inventory documents are included.
Contractor
Prepare and submit termination settlement proposals on the prescribed forms that match the settlement basis and contract type. The contractor must also provide supporting inventory and accounting information on SF 1428, SF 1429, and any other required forms to substantiate claimed amounts.
Agency/Settlement Personnel
Process termination settlements using the standardized forms identified in this section and ensure the forms are obtained from the GSA Forms Library or reproduced only as permitted. They must also confirm that the submission package is complete before settlement review or negotiation.
GSA Forms Library
Provide access to the current prescribed forms referenced in this section. While not a contracting party, the library serves as the official source for obtaining the forms used in termination settlement processing.
Practical Implications
Using the wrong settlement form can slow negotiations or cause a proposal to be returned for correction, especially when the contract type or settlement basis is misidentified.
Contractors should confirm early whether the termination is inventory-basis, total-cost-basis, cost-reimbursement, or short-form, because each path uses different forms and supporting schedules.
SF 1428 and SF 1429 are not just administrative attachments; they are key support documents for inventory-based settlement proposals and missing them can undermine the proposal.
Because the forms are available from GSA and may be locally reproduced, users should still verify they are using the current revision and not an outdated template.
The exception for SF 1034 means agencies and contractors should not assume every listed form can be copied locally without restriction; that form must be handled according to the rule in this section and the cited FAR provision.
Official Regulatory Text
(a) The following forms are prescribed for use in connection with the termination of contracts, as specified in subpart 49.6 . These forms are available at the GSA Forms Library at https://www.gsa.gov/forms . These forms are authorized for local reproduction except for SF 1034 . (1) SF 1034 (GAO), Public Voucher for Purchases and Services Other than Personal . (See 49.302 (a).) (2) SF 1435 (Rev. 03/2016), Settlement Proposal (Inventory Basis) . (See 49.602-1 (a).) (3) SF 1436 (Rev. 5/2004), Settlement Proposal (Total Cost Basis) . (See 49.602-1 (b).) (4) SF 1437 (Rev. 9/1997), Settlement Proposal for Cost-Reimbursement Type Contracts . (See 49.602-1 (c) and 49.302 .) (5) SF 1438 (Rev. 5/2004), Settlement Proposal (Short Form). (See 49.602-1 (d).) (6) SF 1439 (Rev. 7/1989), Schedule of Accounting Information . (See 49.602-3 .) (7) SF 1440 (Rev. 01/1995), Application for Partial Payment . (See 49.602-4 .) (b) SF 1428 (Rev. 6/2007), Inventory Disposal Schedule, and Standard Form 1429 (Rev. 1/2016), Inventory Disposal Schedule-Continuation Sheet , shall be used to support termination settlement proposals listed in paragraph (a) of this section, as specified in 49.602-2 . These forms are available at the GSA Forms Library at https://www.gsa.gov/forms .