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                            16.603-4 Contract clauses.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart16.016.116.216.316.416.516.616.7
Section16.60016.60116.60216.603
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16.603-4 Contract clauses.16.603-4 Contract clauses.       (a) 						            The contracting officer shall	include in each letter contract the clauses required by this regulation	for the type of definitive contract contemplated and any additional	clauses known to be appropriate for it.                                          (b) 						            In addition,	the contracting officer shall insert the following clauses in solicitations	and contracts when a letter contract is contemplated:                                                         (1) 								                The	clause at  52.216-23, Execution and	Commencement of Work, except that this clause may be omitted from letter	contracts awarded on   SF 26;                                                            (2) 								                The clause	at  52.216-24, Limitation	of Government Liability, with dollar amounts completed in a manner	consistent with  16.603-2(d);	and                                                            (3) 								                The clause	at  52.216-25, Contract Definitization,	with its paragraph (b) completed in a manner consistent with  16.603-2(c). If at the	time of entering into the letter contract, the contracting officer	knows that the definitive contract will be based on adequate price	competition or will otherwise meet the criteria of  15.403-1 for not requiring	submission of certified cost or pricing data, the words "and certified	cost or pricing data in accordance with FAR  15.408,  Table  15-2 supporting	its proposal" may be deleted from paragraph (a) of the clause. If	the letter contract is being awarded on the basis of price competition,	the contracting officer shall use the clause with its Alternate	I.                                                                             (c) 						            The contracting	officer shall also insert the clause at  52.216-26, Payments of	Allowable Costs Before Definitization, in solicitations and contracts	if a cost-reimbursement definitive contract is contemplated, unless	the acquisition involves conversion, alteration, or repair of ships.    **Parent topic:**  16.603 Letter contracts.
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