52.241-5
Contractor’s Facilities
Under FAR 52.241-5, contractors generally own, fund, maintain, and remove the facilities needed to provide service on Government premises—and must get Contracting Officer approval before installing, constructing, or removing that equipment.
Overview
- FAR 52.241-5, Contractor’s Facilities, assigns primary responsibility for utility or similar service infrastructure to the contractor when performing under the contract. Unless the contract states otherwise, the contractor must provide, install, operate, maintain, and measure the service using its own facilities at the specified point of delivery.
- The clause also governs access to Government premises, approval requirements for facility changes, liability allocation, and post-termination removal obligations.
Key Rules
- Contractor-furnished facilities
- The contractor must furnish and maintain all facilities needed to provide the contracted service at its own expense unless the contract provides otherwise. Title to those facilities remains with the contractor.
- Approval and site access
- The contractor must obtain Contracting Officer approval before any equipment installation, construction, or removal. The Government grants a revocable, no-rent license to enter and use agreed Government sites, subject to contract limits.
- Liability and taxes
- The contractor bears responsibility for taxes, related charges, and liability arising from construction, operation, maintenance, and repair, except where Government negligence causes loss or damage.
- Access restrictions and removal
- Contractor representatives may access facilities at reasonable times, but the Government may restrict access for security or safety reasons. After contract termination, the contractor generally must remove facilities and restore the site.
Responsibilities
- Contracting Officers: approve installations, construction, and removals; manage access limitations; determine post-termination handling.
- Contractors: provide and maintain facilities, obtain approvals, pay related costs, and remove facilities when required.
- Agencies: allow site access consistent with mission, security, and safety needs.
Practical Implications
- This clause protects the Government from assuming ownership, maintenance, or site-related costs for contractor utility infrastructure.
- Contractors should plan for approval lead times, site-access restrictions, restoration costs, and potential retention of facilities if termination results from contractor fault.
- Common pitfalls include installing equipment before approval, overlooking restoration obligations, and failing to account for taxes and liability exposure.