49.505 Other termination clauses
Source: FAR 49.505 on acquisition.gov
FAR 49.505 mandates the use of specific termination clauses for personal service, cost-reimbursement, time-and-material, and labor-hour contracts, and requires agencies to create their own for communication service contracts.
Overview
FAR 49.505 outlines the requirements for including specific termination clauses in certain types of government contracts. It directs contracting officers to use designated FAR clauses for personal service contracts, excusable delays in cost-reimbursement and certain other contracts, and provides guidance for communication service contracts. The section ensures that contracts are properly equipped to address termination scenarios unique to these contract types, supporting both government interests and contractor rights.
Key Rules
- Personal Service Contracts
- Contracting officers must include FAR 52.249-12 (Termination for Personal Services) in all solicitations and contracts for personal services.
- Excusable Delays
- FAR 52.249-14 (Excusable Delays) must be included in solicitations and contracts for supplies, services, construction, and R&D on a fee basis when using cost-reimbursement, time-and-materials, or labor-hour contracts.
- Communication Service Contracts
- No standard FAR clause is prescribed for termination of communication service contracts with common carriers; agencies must develop their own clauses as appropriate.
Responsibilities
- Contracting Officers: Ensure the correct termination clauses are inserted based on contract type and agency requirements.
- Contractors: Review and understand the applicable termination clauses in their contracts.
- Agencies: Develop and prescribe appropriate termination clauses for communication service contracts as needed.
Practical Implications
- This section ensures contracts are protected against unforeseen events and clarifies the process for termination or excusable delays.
- Contractors must be aware of which clauses apply to their contracts to understand their rights and obligations.
- Failure to include the correct clauses can lead to compliance issues or disputes during contract performance or termination.
(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.