[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]