RFO Rulemaking Proposes Shorter Deadlines for Contractors to Submit Termination Settlement Proposals

Short summary

Proposed FAR Part 49 revisions would cut termination settlement proposal deadlines from one year to 90 days and inventory schedule deadlines from 120 to 60 days. Audits of settlement proposals would become risk-based and discretionary rather than mandatory above the certified cost threshold. Comments on the proposed rule are due July 23, 2026.

• •Termination settlement proposal deadline shortened from 1 year to 90 days
• •Audits become risk-based and discretionary instead of mandatory
• •Comments due July 23, 2026; failure to meet deadlines forfeits appeal rights

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