Solicitation provision and contract clause
Contracting officers must include the appropriate provision or clause regarding severance payments to foreign nationals in solicitations and contracts, based on eligibility and waivers.
Overview
FAR 37.113-2 prescribes the use of specific solicitation provisions and contract clauses related to severance payments to foreign nationals. It requires contracting officers to include the provision at 52.237-8 in all solicitations that fall under the criteria set in 37.113-1(a), unless specifically excluded by 37.113-1(c). If a waiver has been granted by the head of an agency under 37.113-1, the clause at 52.237-9 must be used instead. This ensures that contractors are aware of and comply with restrictions or waivers regarding severance payments to foreign nationals in applicable contracts.
Key Rules
- Use of Provision 52.237-8
- Must be included in solicitations meeting the criteria of 37.113-1(a), except those excluded by 37.113-1(c).
- Use of Clause 52.237-9
- Required when an agency head grants a waiver to the severance payment limitation.
Responsibilities
- Contracting Officers: Ensure the correct provision or clause is included in solicitations and contracts based on the applicability and any waivers granted.
- Contractors: Review and comply with the restrictions or waivers on severance payments to foreign nationals as specified in the solicitation or contract.
- Agencies: Grant waivers when appropriate and ensure proper documentation and clause usage.
Practical Implications
- This section ensures compliance with statutory restrictions on severance payments to foreign nationals, particularly in overseas contracts. Failure to include the correct provision or clause can result in noncompliance and potential contract disputes. Contractors should pay close attention to solicitation instructions and any waivers granted.