52.237-9
Waiver of Limitation on Severance Payments to Foreign Nationals
This clause allows the waiver of severance payment limitations for foreign nationals when authorized by statute, but requires Contracting Officer approval for use in subcontracts.
Overview
FAR 52.237-9 provides a clause that allows for the waiver of the standard limitation on severance payments to foreign nationals, as set forth in FAR 31.205-6(g)(6), when authorized by statute (10 U.S.C. 3744(b) or 41 U.S.C. 4304(b)(1)). This waiver means that, under certain contracts, the usual restrictions on the allowability of severance payments to foreign nationals do not apply. The clause may also be included in subcontracts, but only with the approval of the Contracting Officer.
Key Rules
- Waiver of Severance Payment Limitation
- The usual cost allowability limitations on severance payments to foreign nationals are waived if the contract is covered by the relevant statutes.
- Subcontract Inclusion
- The clause can be flowed down to subcontracts, but only if the Contracting Officer approves its inclusion.
Responsibilities
- Contracting Officers: Must determine if the waiver applies and approve any inclusion of the clause in subcontracts.
- Contractors: Must comply with the waiver terms and seek approval before including the clause in subcontracts.
- Agencies: Ensure statutory authority is met and oversee proper application of the waiver.
Practical Implications
- This clause exists to provide flexibility in certain contracts where severance payments to foreign nationals are necessary and authorized by law.
- Contractors must be aware of the statutory basis for the waiver and ensure they have Contracting Officer approval before extending the waiver to subcontracts.
- Common pitfalls include failing to obtain approval for subcontract inclusion or misunderstanding when the waiver applies.