U.S. flag
          An official website of the United States Government  Main navigation
  

        

              Data Initiatives
                              Regulations
                                                                        Row 1
                                              FAR FAR
                              Smart Matrix Smart Matrix
                              Chapter 99 (CAS) Chapter 99 (CAS)
                              Row 2
                                              DFARS DFARS
                              DFARSPGI DFARSPGI
                              AFARS AFARS
                              DAFFARS DAFFARS
                              DAFFARS MP DAFFARS MP
                              DARS DARS
                              DLAD DLAD
                              NMCARS NMCARS
                              Row 3
                                              SOFARS SOFARS
                              TRANSFARS TRANSFARS
                              AGAR AGAR
                              AIDAR AIDAR
                              CAR CAR
                              DEAR DEAR
                              DIAR DIAR
                              DOLAR DOLAR
                              Row 4
                                              DOSAR DOSAR
                              DTAR DTAR
                              EDAR EDAR
                              EPAAR EPAAR
                              FEHBAR FEHBAR
                              GSAM/R GSAM/R
                              HHSAR HHSAR
                              HSAR HSAR
                              Row 5
                                              HUDAR HUDAR
                              IAAR IAAR
                              JAR JAR
                              LIFAR LIFAR
                              NFS NFS
                              NRCAR NRCAR
                              TAR TAR
                              VAAR VAAR
                              Tools
                                                                        Archives
                              Smart Matrix
                              Regulations Search
                              Acquisition Regulation Comparator (ARC)
                              Policy Network
                                                                        CAOC
                              CAAC
                              FAR Council
                              ISDC
 Breadcrumb
        Home
                            Regulations
                            FAR
                            Subpart 49.5 - Contract Termination Clauses
        
                  FAR
FAR
FAC Number: 2024-03 Effective Date: 02/23/2024
PartPart 1Part 2Part 3Part 4Part 5Part 6Part 7Part 8Part 9Part 10Part 11Part 12Part 13Part 14Part 15Part 16Part 17Part 18Part 19Part 20Part 21Part 22Part 23Part 24Part 25Part 26Part 27Part 28Part 29Part 30Part 31Part 32Part 33Part 34Part 35Part 36Part 37Part 38Part 39Part 40Part 41Part 42Part 43Part 44Part 45Part 46Part 47Part 48Part 49Part 50Part 51Part 52Part 53
Subpart49.049.149.249.349.449.549.6
Section49.50149.50249.50349.50449.505
Leave this field blank
        
                  

                                
                  
        « PreviousNext »
Subpart 49.5 - Contract Termination ClausesSubpart 49.5 - Contract Termination Clauses    **Parent topic:**  Part 49 - Termination of Contracts49.501 General.       This subpart prescribes the principal contract termination clauses. This subpart does not apply to contracts that use the clause at  52.213-4, Terms and Conditions-Simplified Acquisitions (Other Than Commercial Products and Commercial Services). In appropriate cases, agencies may authorize the use of special purpose clauses, if consistent with this chapter.49.502 Termination for convenience of the Government.       (a) 						            Fixed-price contracts that do not exceed the simplified acquisition threshold (short form)-                                                         (1)                         *General use*. The contracting officer shall insert the clause at  52.249-1, Termination for Convenience of the Government (Fixed-Price) (Short Form), in solicitations and contracts when a fixed-price contract is contemplated and the contract amount is not expected to exceed the simplified acquisition threshold, except-                                                                           (i) 										                    If use of the clause at  52.249-4, Termination for Convenience of the Government (Services) (Short Form) is appropriate,                                                                              (ii) 										                    In contracts for research and development work with an educational or nonprofit institution on a no-profit basis,                                                                              (iii) 										                    In contracts for architect-engineer services, or                                                                              (iv) 										                    If one of the clauses prescribed or cited at  49.505(a) or (c), is appropriate.                                                                                                           (2)                         *Dismantling and demolition.* If the contract is for dismantling, demolition, or removal of improvements, the contracting officer shall use the clause with its AlternateI.                                                                             (b) 						            Fixed-price contracts that exceed the simplified acquisition threshold-                                                         (1)                                                                           (i)                               *General use.* The contracting officer shall insert the clause at  52.249-2, Termination for Convenience of the Government (Fixed-Price), in solicitations and contracts when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold except in contracts for -                                                                                             (A) 												                        Dismantling and demolition,                                                                                                (B) 												                        Research and development work with an educational or nonprofit institution on a no-profit basis, or                                                                                                (C) 												                        Architect-engineer services; it shall not be used if	the clause at  52.249-4, Termination for Convenience of	the Government (Services) (Short Form), is	appropriate (see  49.502(c)), or one of	the clauses prescribed or cited at  49.505(a) or (c), is appropriate.                                                                                                                                                                      (2)                         *Construction.* If the contract is for construction, the contracting officer shall use the clause with its AlternateI.                                                                           (i)                               *Partial payments.* If the contract is with an agency of the U.S. Government or with State, local, or foreign governments or their agencies, and if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate, the contracting officer shall use the clause with its AlternateII. In such contracts for construction, the contracting officer shall use the clause with its AlternateIII.                                                                              (ii)                               *Dismantling and demolition.* The contracting officer shall insert the clause at  52.249-3, Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements) in solicitations and contracts for dismantling, demolition, or removal of improvements, when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold. If the contract is with an agency of the U.S. Government or with State, local, or foreign governments or their agencies, and if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate, the contracting officer shall use the clause with its AlternateI.                                                                                                                            (c)                   *Service contracts (short form).* The contracting officer shall insert the clause at  52.249-4, Termination for Convenience of the Government (Services) (Short Form), in solicitations and contracts for services, regardless of value, when a fixed-price contract is contemplated and the contracting officer determines that because of the kind of services required, the successful offeror will not incur substantial charges in preparation for and in carrying out the contract, and would, if terminated for the convenience of the Government, limit termination settlement charges to services rendered before the date of termination. Examples of services where this clause may be appropriate are contracts for rental of unreserved parking space, laundry and dry cleaning, etc.                                          (d)                   *Research and development contracts.* The contracting officer shall insert the clause at  52.249-5, Termination for the Convenience of the Government (Educational and Other Nonprofit Institutions), in solicitations and contracts when either a fixed-price or cost-reimbursement contract is contemplated for research and development work with an educational or nonprofit institution on a nonprofit or no-fee basis.                                          (e) 						            Subcontracts-                                                         (1)                         *General use.* The prime contractor may find the clause at  52.249-1, Termination for Convenience of the Government (Fixed-Price) (Short Form), or at  52.249-2, Termination for Convenience of the Government (Fixed-Price), as appropriate, suitable for use in fixed-price subcontracts, except as noted in paragraph (e)(2) of this section; provided, that the relationship between the contractor and subcontractor is clearly indicated. Inapplicable conditions (*e.g.,* paragraph (d)) in  52.249-2 should be deleted and the periods reduced for submitting the subcontractor’s termination settlement proposal (*e.g.,*6 months), and for requesting an equitable price adjustment (*e.g.,*45 days).                                                            (2)                         *Research and development.* The prime contractor may find the clause at  52.249-5, Termination for the Convenience of the Government (Educational and Other Nonprofit Institutions), suitable for use in subcontracts placed with educational or nonprofit institutions on a no-profit or no-fee basis; provided, that the relationship between the contractor and subcontractor is clearly indicated. Inapplicable conditions (*e.g.,* paragraph (h)) should be deleted, the period for submitting the subcontractor’s termination settlement proposal should be reduced (*e.g.,*6 months), the subcontract should be placed on a no-profit or no-fee basis, and the subcontract should incorporate or be negotiated on the basis of the cost principles in  part  31 of the Federal Acquisition Regulation.49.503 Termination for convenience of the Government and default.       (a) 						            Cost-reimbursement contracts-                                                         (1)                         *General use.* Insert the clause at  52.249-6, Termination (Cost-Reimbursement), in solicitations and contracts when a cost-reimbursement contract is contemplated, except contracts for research and development with an educational or nonprofit institution on a no-fee basis.                                                            (2)                         *Construction.* If the contract is for construction, the contracting officer shall use the clause with its AlternateI.                                                            (3)                         *Partial payments.* If the contract is with an agency of the U.S. Government or with State, local, or foreign governments or their agencies, and if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate, the contracting officer shall use the clause with its AlternateII. In such contracts for construction, the contracting officer shall use the clause with its AlternateIII.                                                            (4)                         *Time-and-material and labor-hour contracts.* If the contract is a time-and-material or labor-hour contract, the contracting officer shall use the clause with its AlternateIV. If the contract is with an agency of the U.S. Government or with State, local, or foreign governments or their agencies, and if the contracting officer determines that the requirement to pay interest on excess partial payments is inappropriate, the contracting officer shall use the clause with its Alternate V.                                                                             (b) 						            Insert the clause at  52.249-7, Termination (Fixed-Price Architect-Engineer), in solicitations and contracts for architect-engineer services, when a fixed-price contract is contemplated.                                          (c)                   *Subcontracts.* The prime contractor may find the clause at  52.249-6, Termination (Cost-Reimbursement), suitable for use in cost-reimbursement subcontracts; provided, that the relationship between the contractor and subcontractor is clearly indicated. Inapplicable conditions (*e.g.,* paragraphs (e), (j) and (n)) should be deleted and the period for submitting the subcontractor’s termination settlement proposal should be reduced (*e.g.,*6 months).49.504 Termination of fixed-price contracts for default.       (a)                                                         (1)                         *Supplies and services.* The contracting officer shall insert the clause at  52.249-8, Default (Fixed-Price Supply and Service), in solicitations and contracts when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold. The contracting officer may use the clause when the contract amount is at or below the simplified acquisition threshold, if appropriate (*e.g.,* if the acquisition involves items with a history of unsatisfactory quality).                                                            (2)                         *Transportation.* If the contract is for transportation or transportation-related services, the contracting officer shall use the clause with its AlternateI.                                                                             (b)                   *Research and development.* The contracting officer shall insert the clause at  52.249-9, Default (Fixed-Price Research and Development), in solicitations and contracts for research and development when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold, except those with educational or nonprofit institutions on a no-profit basis. The contracting officer may use the clause when the contract amount is at or below the simplified acquisition threshold;, if appropriate (*e.g.,* if the contracting officer believes that key personnel essential to the work may be devoted to other programs).                                          (c)                                                         (1)                         *Construction.* The contracting officer shall insert the clause at  52.249-10, Default (Fixed-Price Construction), in solicitations and contracts for construction, when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold. The contracting officer may use the clause when the contract amount is at or below the simplified acquisition threshold, if appropriate (*e.g.,* if completion dates are essential).                                                            (2)                         *Dismantling and demolition.* If the contract is for dismantling, demolition, or removal of improvements, the contracting officer shall use the clause with its AlternateI.                                                            (3)                         *National emergencies.* If the contract is to be awarded during a period of national emergency, the contracting officer may use the clause-                                                                           (i) 										                    With its AlternateII when a fixed-price contract for construction is contemplated, or                                                                              (ii) 										                    With its AlternateIII when a contract for dismantling, demolition, or removal of improvements is contemplated.49.505 Other termination clauses.       (a)                   *Personal service contracts.* The contracting officer shall insert the clause at  52.249-12, Termination (Personal Services), in solicitations and contracts for personal services (see  part  37).                                          (b)                   *Excusable delays.* The contracting officer shall insert the clause at  52.249-14, Excusable Delays, in solicitations and contracts for supplies, services, construction, and research and development on a fee basis, when a cost-reimbursement contract is contemplated. The contracting officer shall also insert the clause in time-and-material contracts, and labor-hour contracts.                                          (c)                   *Communication service contracts.* This regulation does not prescribe a clause for the cancellation or termination of orders under communication service contracts with common carriers because of special agency requirements that apply to these services. An appropriate clause, however, shall be prescribed at agency level, within those agencies contracting for these services.
« PreviousNext »
FavoriteX

      Far Parts
            Regulations FAR Menu
  

        
      Index
                              List of Sections Affected
                              DOD Deviations
                              CAAC Deviations
                              1
                              2
                              3
                              4
                              5
                              6
                              7
                              8
                              9
                              10
                              11
                              12
                              13
                              14
                              15
                              16
                              17
                              18
                              19
                              20
                              21
                              22
                              23
                              24
                              25
                              26
                              27
                              28
                              29
                              30
                              31
                              32
                              33
                              34
                              35
                              36
                              37
                              38
                              39
                              40
                              41
                              42
                              43
                              44
                              45
                              46
                              47
                              48
                              49
                              50
                              51
                              52
                              53
                              Chapter 99 (CAS)Definitions
    Toggle
FAC Changes
    Toggle
Style Formatter
    Toggle

      ×
        Data Initiatives
                                                              Regulations
                                                              Tools
                                              Archives
                                                              Smart Matrix
                                                              Regulations Search
                                                              Acquisition Regulation Comparator (ARC)
                                                              Policy Network
                                              CAO.gov
                                                        CAO Home
                                                              Council Member
                                                                    Large Agencies
                                                              Small Agencies
                                                              Council Defining Documents
                                                                    CAOC History
                                                              CAOC Charter
                                                              Civilian Agency Acquisition Council (CAAC)
                                                              Federal Acquisition Regulatory Council
                                                              Interagency Suspension and Debarment Committee (ISDC)
                                                              Search
 ˄ Top Sign up for FAR News

                            Share the FAR
                        Upper Footer Menu
  

        
      Useful Links
                              FAR Resources
                              Training
                              Acquisition Systems
            
                            **Contact Us/FAQs**
                        **Privacy and Security Notice**
                        **Accessibility Aids**
                        **Last Updated 03/29/2024**
 ACQUISITION.GOV
                An official website of the General Services Administration About GSA
                Accessibility support
                FOIA requests
                No FEAR Act data
                Office of the Inspector General
                Performance reports
                Privacy policy Looking for U.S. government information and services?
            Visit USA.gov
 «
    
    Tt