48 CFR §49.109-2
Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
- (a)The TCO shall—
- (1)Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;
- (2)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;
- (3)Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;
- (4)Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and
- (5)At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.
- (b)A recommended format for settlement of reservations appears in 49.603-9.