Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services)
FAR 52.213-4 requires contractors on simplified acquisitions (other than commercial items) to comply with a broad set of referenced FAR clauses, and establishes key requirements for inspection, termination, and warranty.
Overview
FAR 52.213-4 establishes the standard terms and conditions for simplified acquisitions (other than commercial products and commercial services) under the Simplified Acquisition Threshold (SAT). This clause incorporates by reference a comprehensive set of FAR clauses that address legal, regulatory, and procedural requirements, including labor standards, equal opportunity, payment terms, supply chain security, and environmental considerations. It also outlines the contractor’s obligations regarding inspection, acceptance, excusable delays, termination for convenience or cause, and warranty of delivered items. The clause ensures that even simplified acquisitions maintain compliance with key federal laws and policies, while streamlining the process for both contractors and contracting officers.
Key Rules
- Incorporation of FAR Clauses by Reference
- Contractors must comply with a detailed list of FAR clauses, many of which implement statutory or executive order requirements, and additional clauses that may apply based on contract type, value, or performance location.
- Inspection and Acceptance
- Only conforming items should be tendered; the government reserves the right to inspect, require correction, or reject nonconforming supplies/services.
- Excusable Delays
- Contractors are not liable for delays beyond their control but must notify the contracting officer promptly and document the occurrence.
- Termination for Convenience or Cause
- The government may terminate the contract at its convenience or for cause, with payment or liability determined by the nature of the termination.
- Warranty
- Contractors warrant that delivered items are merchantable and fit for their intended use.
Responsibilities
- Contracting Officers: Must ensure the correct clauses are incorporated, determine applicability, and enforce compliance.
- Contractors: Must review and comply with all referenced clauses, maintain required records, provide timely notifications, and ensure deliverables meet contract requirements.
- Agencies: Oversee compliance, provide clause texts upon request, and manage contract administration, including inspection and termination actions.
Practical Implications
- This clause streamlines compliance for simplified acquisitions while ensuring adherence to key federal requirements. Contractors must be diligent in reviewing which clauses apply to their specific contract, especially those triggered by thresholds or performance locations. Failure to comply can result in termination or other remedies. Common pitfalls include overlooking applicable clauses, missing notification deadlines, or failing to provide conforming deliverables.