29.401
Domestic contracts
FAR 29.401 ensures that domestic contracts include the necessary clauses to address federal, state, and local tax obligations, as well as special state-specific requirements.
Overview
FAR 29.401 outlines the specific contract clauses that must be included in domestic contracts to address various tax and regulatory requirements. This section serves as a reference point for contracting officers to ensure compliance with federal, state, and local tax obligations, as well as special provisions for certain types of contracts, such as those involving leased equipment or construction in specific states. The section references four key areas: indefinite-delivery contracts for leased equipment, construction contracts in North Carolina, federal/state/local taxes, and New Mexico gross receipts and compensating tax. Each referenced clause addresses unique compliance obligations that must be incorporated into applicable contracts.
Key Rules
- Indefinite-Delivery Contracts for Leased Equipment
- Requires inclusion of clauses addressing tax treatment for leased equipment under indefinite-delivery contracts.
- Construction Contracts in North Carolina
- Mandates specific clauses for construction contracts performed in North Carolina to address state tax requirements.
- Federal, State, and Local Taxes
- Requires clauses that clarify the contractor’s responsibilities regarding federal, state, and local taxes.
- New Mexico Gross Receipts and Compensating Tax
- Specifies the need for clauses dealing with New Mexico’s unique tax requirements for applicable contracts.
Responsibilities
- Contracting Officers: Must include the appropriate tax-related clauses in domestic contracts based on contract type and location.
- Contractors: Must comply with the tax obligations and reporting requirements specified in the contract clauses.
- Agencies: Ensure oversight and enforcement of tax compliance in contract administration.
Practical Implications
- This section ensures that all relevant tax and regulatory clauses are included in domestic contracts, reducing the risk of non-compliance.
- Contractors must be aware of and adhere to state-specific and contract-type-specific tax requirements.
- Failure to include or comply with these clauses can result in legal or financial penalties.