[Code of Federal Regulations]
[Title 48, Volume 3]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR249.7000]

[Page 377]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                    CHAPTER 2--DEPARTMENT OF DEFENSE
 
PART 249--TERMINATION OF CONTRACTS--Table of Contents
 
            Subpart 249.70--Special Termination Requirements
 
Sec. 249.7000  Terminated contracts with Canadian Commercial Corporation.


    (a) Terminate contracts with the Canadian Commercial Corporation in 
accordance with--
    (1) The Letter of Agreement (LOA) between the Department of Defence 
Production (Canada) and the U.S. DoD, ``Canadian Agreement'' (for a copy 
of the LOA or for questions on its currency, contact the Foreign 
Contracting Directorate, Office of the Director of Defense Procurement, 
(703) 697-9351, DSN 227-9351));
    (2) Policies in the Canadian Agreement and part 249; and
    (3) The Procedures Manual on Termination of Contracts, Public Works 
and Government Services Canada.
    (b) Contracting officers shall ensure that the Canadian Commercial 
Corporation submits termination settlement proposals in the format 
prescribed in FAR 49.602 and that they contain the amount of settlements 
with subcontractors. The termination contracting officer (TCO) shall 
prepare an appropriate settlement agreement. (See FAR 49.603.) The 
letter transmitting a settlement proposal must certify--
    (1) That disposition of inventory has been completed; and
    (2) That the Contract Claims Resolution Board of the Public Works 
and Government Services Canada has approved settlements with Canadian 
subcontractors when the Procedures Manual on Termination of Contracts 
requires such approval.
    (c)(1) The Canadian Commercial Corporation will--
    (i) Settle all Canadian subcontractor termination claims under the 
Canadian Agreement; and
    (ii) Submit schedules listing serviceable and usable contractor 
inventory for screening to the TCO (see FAR 45.6).
    (2) After screening, the TCO must provide guidance to the Canadian 
Commercial Corporation for disposition of the contractor inventory.
    (3) Settlement of Canadian subcontractor claims are not subject to 
the approval and ratification of the TCO. However, when the proposed 
negotiated settlement exceeds the total contract price of the prime 
contract, the TCO shall obtain from the U.S. contracting officer prior 
to final settlement--
    (i) Ratification of the proposed settlement; and
    (ii) A contract modification increasing the contract price and 
obligating the additional funds.
    (d) The Canadian Commercial Corporation should send all termination 
settlement proposals submitted by U.S. subcontractors and suppliers to 
the TCO of the cognizant contract administration office of the Defense 
Contract Management Agency for settlement. The TCO will inform the 
Canadian Commercial Corporation of the amount of the net settlement of 
U.S. subcontractors and suppliers so that this amount can be included in 
the Canadian Commercial Corporation termination proposal. The Canadian 
Commercial Corporation is responsible for execution of the settlement 
agreement with these subcontractors.

[56 FR 36471, July 31, 1991, as amended at 65 FR 39706, June 27, 2000]