Section 27-3703. SETTLEMENT AFTER TERMINATION FOR CONVENIENCE

 

3703.1After issuing a notice of termination for convenience, the contracting officer shall be responsible for negotiating any settlement with the contractor. The contracting officer shall attempt to settle in one agreement all rights and liabilities of parties involved in the terminated contract except those arising from any portion of the contract still in effect.

 

3703.2Consistent with the notice of termination for convenience, the contracting officer shall do the following:

 

(a)Direct the action required of the prime contractor;

 

(b)Examine the settlement proposal of the prime contractor and, when appropriate, the settlement proposals of subcontractors; and

 

(c)Promptly negotiate settlement with the contractor and enter into a settlement agreement.

 

3703.3If all of the elements of the settlement cannot be agreed upon between the contractor and the contracting officer, the contracting officer shall follow the procedures set forth in §3705 for settlement by determination for those elements that cannot be settled by agreement.

 

3703.4After a settlement agreement is completed under §3703.2(c), the contracting officer shall promptly hold a conference with the contractor to develop a definite plan for effecting the settlement.

 

3703.5After consulting with the contractor, the contracting officer may request any of the principal subcontractors to attend the settlement conference, if appropriate.

 

3703.6The termination settlement shall cover the following:

 

(a)Any setoffs that the District has against the contractor that may be applied against the terminated contract; and

 

(b)All settlement proposals of subcontractors, except proposals that are specifically excepted from the agreement and reserved for separate settlement.

 

3703.7If any items are excepted from the settlement agreement, the contracting officer shall do the following:

 

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

 

(b)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;

 

(c)Mark each applicable settlement agreement with a legend indicating that the settlement agreement contains a reservation and retain the contract file until the reservation is removed;

 

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

 

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

 

3703.8Before execution of a settlement agreement, the contracting officer shall determine the accuracy of the District property account for the terminated contract. If a review discloses property for which the contractor cannot account, the contracting officer shall reserve in the settlement agreement the rights of the District regarding that property or make an appropriate deduction from the amount otherwise due the contractor.

 

3703.9When the contracting officer cannot promptly complete settlement under a terminated contract, the contracting officer may enter into a partial settlement in the following situations:

 

(a)When the issues on which the agreement has been reached are clearly severable from other issues; and

 

(b)When the partial settlement will not prejudice the District's or contractor's interest in disposing of the unsettled portion of the settlement proposal.

 

3703.10The contracting officer responsible for negotiating the final settlement shall establish a separate case file for each termination. This file shall include memoranda and records of all actions relative to the settlement.

 

source

Final Rulemaking publishing at 35 DCR 1693 (February 26, 1988).