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Title 48Chapter 1Subchapter GPart 49Subpart 49.6 → §49.604

Title 48: Federal Acquisition Regulations System
Subpart 49.6—Contract Termination Forms and Formats

49.604   Release of excess funds under terminated contracts.

The following format shall be used to recommend the release of excess funds under terminated contracts, except if the contracting office retains responsibility for settlement of the termination:

FROM:   Termination Contracting Officer ___ [address]

TO:   Contracting office ____ [address]

SUBJ:   Terminated Contract No. __ with __ [Contractor]


(a) [Cite termination notice and effective date.]

(b) [Cite prior letters releasing excess funds, if any.]

1. Referenced termination notice, ___ [insert “completely” or “partially”] terminated contract ___.

2. Based on the best information available, it is estimated that the gross settlement cost will be $______. The amount available for release as excess to the contract is $______. Any payments previously made to the Contractor for terminated items have been considered in arriving at the above amounts.

[If prior letters recommending release of excess funds are cited, use the following as paragraph 2:

“The estimated settlement costs previously reported by reference (b) in the amount of $______ are revised. On the best evidence now available, it is estimated that the settlement costs will be $______. The additional amount available for release is $______”.]

3. The related appropriations and amounts involved are:

AppropriationsAllocated Amounts  

Copies to:

Paying Office

Accounting and Finance Office


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