52.242-15
Stop-Work Order
FAR 52.242-15 empowers the government to pause contract work and requires contractors to promptly comply, minimize costs, and assert claims for adjustments within strict timeframes.
Overview
FAR 52.242-15, Stop-Work Order, provides the government with the authority to order a contractor to halt all or part of the work under a contract for up to 90 days (or less, if specified), with possible extensions by mutual agreement. This clause outlines the procedures for issuing, managing, and resolving stop-work orders, including contractor obligations, potential contract adjustments, and the process for resuming or terminating work. It also addresses cost and schedule adjustments resulting from stop-work orders and provides alternate language for cost-reimbursement contracts.
Key Rules
- Issuance of Stop-Work Order
- The Contracting Officer can issue a written stop-work order at any time, requiring immediate compliance and cost minimization by the contractor.
- Duration and Resolution
- The stop-work order is effective for up to 90 days (or less), unless extended by agreement. Within this period, the order must be canceled or the work terminated (for default or convenience).
- Resumption and Adjustments
- If the order is canceled or expires, the contractor resumes work and may request an equitable adjustment to schedule or price if costs or time increased, provided the claim is made within 30 days (or later at the CO's discretion).
- Termination Scenarios
- If work is terminated (for convenience or default), reasonable costs from the stop-work order are considered in the settlement.
- Alternate I for Cost-Reimbursement Contracts
- Modifies adjustment language and references to termination clauses for cost-reimbursement contracts.
Responsibilities
- Contracting Officers: Issue, manage, and resolve stop-work orders; determine equitable adjustments; process terminations and settlements.
- Contractors: Immediately comply with stop-work orders, minimize costs, resume work when directed, and timely assert claims for adjustments.
- Agencies: Ensure proper documentation and oversight of stop-work order processes.
Practical Implications
- This clause allows the government to pause contract performance without immediate termination, providing flexibility in managing contract changes or issues. Contractors must be prepared to halt work quickly, track costs, and assert claims for adjustments. Failure to comply or timely claim adjustments can result in unrecoverable costs or schedule impacts. Common pitfalls include delayed claims, inadequate cost tracking, or misunderstanding the scope of allowable adjustments.