Regulations last checked for updates: May 03, 2025

Title 48 - Federal Acquisition Regulations System last revised: Oct 18, 2025
1252.216-74 - 1252.216-74 Settlement of Letter Contract.

As prescribed in 1216.603-4, insert the following clause:

Settlement of Letter Contract (NOV 2022)

(a) This contract constitutes the definitive contract contemplated by issuance of letter contract___[insert number] dated___[insert effective date]. It supersedes the letter contract and its modification number(s)___[insert number(s)] and, to the extent of any inconsistencies, governs.

(b) The cost(s) and fee(s), or price(s), established in this definitive contract represents full and complete settlement of letter contract___[insert number] and modification number(s)___[insert number(s)]. Payment of the agreed upon fee or profit withheld pending definitization of the letter contract, may commence immediately at the rate and times stated within this contract.

(End of clause)
authority: 5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301 through 1.304
source: 87 FR 61159, Oct. 7, 2022, unless otherwise noted.
cite as: 48 CFR 1252.216-74