Contractor’s Facilities
Contractors providing utility services on government premises must bear all costs and responsibilities for their facilities, including installation, maintenance, approvals, and removal, unless otherwise specified in the contract.
Overview
FAR 52.241-5, Contractor’s Facilities, outlines the responsibilities of contractors providing utility services to the government regarding the provision, installation, operation, maintenance, and removal of their facilities on government premises. The clause clarifies that, unless otherwise specified, contractors are responsible for all costs and liabilities associated with their facilities, including installation, operation, maintenance, taxes, and removal. The government retains the right to approve any equipment installation, construction, or removal, and grants the contractor a revocable permit to access government sites for contract-related purposes. The clause also addresses access restrictions, liability for loss or damage, and requirements for restoring government property upon contract termination.
Key Rules
- Contractor Responsibility for Facilities
- Contractors must provide, install, operate, and maintain all necessary facilities at their own expense, unless otherwise stated in the contract.
- Approval and Access
- Contractors must obtain Contracting Officer approval before installing, constructing, or removing equipment, and are granted a revocable permit to access government premises for contract purposes.
- Liability and Taxes
- Contractors are responsible for all applicable taxes, charges, and liabilities related to their facilities, except for loss or damage caused by government negligence.
- Removal and Restoration
- Upon contract termination, contractors must remove their facilities and restore government premises, unless otherwise specified. If termination is due to contractor fault, the government may retain the facilities temporarily.
Responsibilities
- Contracting Officers: Approve equipment installation, construction, or removal; may restrict contractor access for security or safety.
- Contractors: Provide and maintain facilities, obtain approvals, pay all related costs and taxes, ensure proper removal and restoration, and comply with access restrictions.
- Agencies: Oversee contractor compliance and enforce access or security limitations as needed.
Practical Implications
- This clause ensures clear delineation of responsibilities for utility service facilities on government property, minimizing disputes over costs, access, and liability. Contractors must plan for all expenses and approvals related to their facilities and be prepared for removal and restoration obligations at contract end. Common pitfalls include failing to obtain required approvals or neglecting restoration duties, which can result in additional costs or penalties.