52.241-5 Contractor’s Facilities
Source: FAR 52.241-5 on acquisition.gov
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.
As prescribed in 41.501(c)(4), insert a clause substantially the same as the following:
Contractor’s Facilities (Feb 1995)
(a) The Contractor, at its expense, unless otherwise provided for in this contract, shall furnish, install, operate, and maintain all facilities required to furnish service hereunder, and measure such service at the point of delivery specified in the Service Specifications. Titleto all such facilities shall remain with the Contractor and the Contractor shall be responsible for loss or damage to such facilities, except that the Government shall be responsible to the extent that loss or damage has been caused by the Government’s negligent acts or omissions.
(b) Notwithstanding any terms expressed in this clause, the Contractor shall obtain approval from the Contracting Officer prior to any equipment installation, construction, or removal. The Government hereby grants to the Contractor, free of any rental or similar charge, but subject to the limitations specified in this contract, a revocable permit or license to enter the service location for any proper purpose under this contract. This permit or license includes use of the site or sites agreed upon by the parties hereto for the installation, operation, maintenance, and repair of the facilities of the Contractor required to be located upon Government premises. All applicable taxes and other charges in connection therewith, together with all liability of the Contractor in construction, operation, maintenance and repair of such facilities, shall be the obligation of the Contractor.
(c) Authorized representatives of the Contractor will be allowed access to the facilities on Government premises at reasonable times to perform the obligations of the Contractor regarding such facilities. It is expressly understood that the Government may limit or restrict the right of access herein granted in any manner considered necessary (e.g., national security, public safety).
(d) Unless otherwise specified in this contract, the Contractor shall, at its expense, remove such facilities and restore Government premises to their original condition as near as practicable within a reasonable time after the Government terminates this contract. In the event such termination of this contract is due to the fault of the Contractor, such facilities may be retained in place at the option of the Government for a reasonable time while the Government attempts to obtain service elsewhere comparable to that provided for hereunder.
(End of clause)