52.211-11 Liquidated Damages-Supplies, Services, or Research and Development
Source: FAR 52.211-11 on acquisition.gov
FAR 52.211-11 requires contractors to pay a specified daily penalty for late delivery or performance unless the delay is beyond their control and not their fault.
Overview
FAR 52.211-11 establishes the requirements for liquidated damages in contracts for supplies, services, or research and development. This clause is used when timely delivery or performance is critical and actual damages from delay would be difficult to determine. It specifies that if a contractor fails to deliver or perform on time, they must pay a pre-determined daily amount as liquidated damages. The clause also clarifies that these damages are in addition to any excess costs incurred by the government if the contract is terminated for default and the government must obtain the supplies or services elsewhere. However, contractors are not liable for liquidated damages if the delay is beyond their control and not due to their fault or negligence, as defined in the Default-Fixed-Price Supply and Service clause.
Key Rules
- Liquidated Damages for Delay
- Contractors must pay a specified daily amount for each day delivery or performance is late.
- Damages After Termination
- If the contract is terminated for default, liquidated damages continue to accrue until the government obtains replacement supplies or services.
- Exceptions for Uncontrollable Delays
- Contractors are not liable for liquidated damages if delays are beyond their control and not due to their fault or negligence.
Responsibilities
- Contracting Officers: Must insert the clause in applicable contracts and specify the daily liquidated damages amount.
- Contractors: Must ensure timely delivery or performance and understand liability for delays.
- Agencies: Must monitor contract performance and enforce liquidated damages provisions as appropriate.
Practical Implications
- This clause incentivizes timely performance and provides a clear, enforceable remedy for government losses due to delay.
- Contractors should carefully assess their ability to meet delivery schedules and document causes of any delays.
- Common pitfalls include underestimating the impact of delays or failing to communicate uncontrollable circumstances promptly.
As prescribed in 11.503(a), insert the following clause in solicitations and contracts:
Liquidated Damages-Supplies, Services, or Research and Development (Sept 2000)
(a) If the Contractor fails to deliver the supplies or perform the services within the time specified in this contract, the Contractor shall, in place of actual damages, pay to the Government liquidated damages of $__________ per calendar day of delay [Contracting Officer insert amount].
(b) If the Government terminates this contract in whole or in part under the Default-Fixed-Price Supply and Service clause, the Contractor is liable for liquidated damages accruing until the Government reasonably obtains delivery or performance of similar supplies or services. These liquidated damages are in addition to excess costs of repurchase under the Termination clause.
(c) The Contractor will not be charged with liquidated damages when the delay in delivery or performance is beyond the control and without the fault or negligence of the Contractor as defined in the Default-Fixed-Price Supply and Service clause in this contract.
(End of clause)