Termination Settlement Proposal Forms (SFs 1435 through 1440) FAR Section Affected: Subpart 49.6

This clearance covers the information that contractors must submit to comply with the termination settlement proposal requirements in the Federal Acquisition Regulation (FAR). The termination settlement proposal forms (Standard Forms 1435 through 1440) are used by all Executive agencies, including the Department of Defense, for settling terminated prime contracts and subcontracts per FAR subpart 49.6, Contract Termination Forms and Formats. The forms provide a standardized format for listing essential cost and inventory information needed to support the terminated contractor’s negotiated position. The contracting officer uses the information to determine/support reimbursement costs upon settlement of a terminated contract.

The latest form for Termination Settlement Proposal Forms (SFs 1435 through 1440) FAR Section Affected: Subpart 49.6 expires 2023-04-30 and can be found here.