D.C. Mun. Regs. r. 27-3708
The contractor shall submit to the contracting officer a settlement proposal for the amount claimed because of the termination for convenience.
The contractor shall submit the settlement proposal within one (1) year from the effective date of the termination, unless the period is extended by the contracting officer.
The settlement proposal shall cover all cost elements, including settlements with subcontractors and any proposed profit, and shall include reasonable detail supported by accounting data satisfactory to the contracting officer.
For cost-reimbursement contracts, the termination clauses approved by the Director shall provide for settlement of costs and fees, if any. The contract clauses governing costs shall determine what costs are allowable.
The settlement agreement may include all demands of the District and proposals of the contractor under the terminated contract. However, no amount shall be allowed for any item of cost disallowed by the contracting officer.
If the contracting officer and contractor agree on an overall settlement of costs, agreement on each element of cost shall not be required. When appropriate, the contracting officer may compromise differences and settle doubtful costs by agreement. However, an overall settlement shall not include costs that are clearly not allowable under the terms of the contract.
D.C. Mun. Regs. r. 27-3708