FAR 49.304-1 — General
Regulatory text. Not legal advice.
(a)
(a) In a partial termination, the TCO shall limit the settlement to an adjustment of the fee, if any, and with the concurrence of the contracting office, to a reduction in the estimated cost. The TCO shall adjust the fee as provided in FAR 49.304-2 and FAR 49.305, unless—
(1) The terminated portion is clearly severable from the balance of the contract; or
(2) Performance of the contract is virtually complete, or performance of any continued portion is only on subsidiary items or spare parts, or is otherwise not substantial.
(b)
(b) In the case of the exceptions in paragraph (a), the procedures in FAR 49.302 and FAR 49.303 apply.
Source: eCFR • Pulled 2026-04-16