48 CFR 49.109-2 - 49.109-2 Reservations.

Regulations last checked for updates: May 06, 2024

Title 48 - Federal Acquisition Regulations System last revised: May 02, 2024

View all text of Subpart 49.1 [49.100 - 49.115]

49.109-2 - 49.109-2 Reservations.

(a) The TCO shall—

(1) Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;

(2) Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;

(3) Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;

(4) Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and

(5) At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.

(b) A recommended format for settlement of reservations appears in 49.603-9.

authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

source: 48 FR 42447, Sept. 19, 1983, unless otherwise noted.

cite as: 48 CFR 49.109-2