---
kind: "section"
citation: "48 C.F.R. § 49.304-1"
title: "48"
number: "49.304-1"
heading: "General."
url: "https://uscodex.org/cfr/48/49.304-1"
---

# §49.304-1. General.

- (a) In a partial termination, the TCO shall limit the settlement to an adjustment of the fee, if any, and with the concurrence of the contracting office, to a reduction in the estimated cost. The TCO shall adjust the fee as provided in 49.304-2 and 49.305, unless—
  - (1) The terminated portion is clearly severable from the balance of the contract; or
  - (2) Performance of the contract is virtually complete, or performance of any continued portion is only on subsidiary items or spare parts, or is otherwise not substantial.
- (b) In the case of the exceptions in [paragraph (a)](#a), the procedures in 49.302 and 49.303 apply.

## Notes

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42447, Sept. 19, 1983, unless otherwise noted.