29.401-1
Indefinite-delivery contracts for leased equipment
Include the 52.229-1 State and Local Taxes clause in fixed-price indefinite-delivery contracts for leased equipment when delivery locations are unknown and performance is in the U.S. or outlying areas.
Overview
FAR 29.401-1 requires the inclusion of the clause at 52.229-1, State and Local Taxes, in solicitations and contracts for leased equipment under specific circumstances. This applies when a fixed-price indefinite-delivery contract is planned, the contract will be performed in whole or in part within the United States or its outlying areas, and the delivery locations are not determined at the time of contracting. The clause addresses the handling of state and local taxes for leased equipment, ensuring both parties understand their obligations regarding tax liabilities that may arise during contract performance.
Key Rules
- Clause Inclusion Requirement
- The 52.229-1 clause must be inserted in relevant solicitations and contracts for leased equipment.
- Applicability Conditions
- Applies only to fixed-price indefinite-delivery contracts performed in the U.S. or outlying areas where delivery locations are unknown at award.
Responsibilities
- Contracting Officers: Must ensure the 52.229-1 clause is included in applicable solicitations and contracts.
- Contractors: Should review and understand their obligations regarding state and local taxes as outlined in the clause.
- Agencies: Oversee compliance with clause inclusion and proper contract administration.
Practical Implications
- This requirement ensures clarity on tax responsibilities for leased equipment contracts where delivery locations are not predetermined, reducing the risk of disputes or unexpected costs. Contractors should be aware of potential tax liabilities and ensure compliance with the clause to avoid penalties or contract issues.