52.242-15 Stop-Work Order
Source: FAR 52.242-15 on acquisition.gov
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.
As prescribed in 42.1305(b), insert the following clause. The "90-day" period stated in the clause may be reduced to less than 90 days.
Stop-Work Order (Aug 1989)
(a) The Contracting Officer may, at any time, by written order to the Contractor, require the Contractor to stop all, or any part, of the work called for by this contract for a period of 90 days after the order is delivered to the Contractor, and for any further period to which the parties may agree. The order shall be specifically identified as a stop-work order issued under this clause. Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within a period of 90 days after a stop-work is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the Contracting Officer shall either-
(1) Cancel the stop-work order; or
(2) Terminate the work covered by the order as provided in the Default, or the Termination for Convenience of the Government, clause of this contract.
(b) If a stop-work order issued under this clause is canceled or the period of the order or any extension thereof expires, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if-
(1) The stop-work order results in an increase in the time required for, or in the Contractor’s cost properly allocable to, the performance of any part of this contract; and
(2) The Contractor asserts its right to the adjustment within 30 days after the end of the period of work stoppage; provided, that, if the Contracting Officer decides the facts justify the action, the Contracting Officer may receive and act upon the claim submitted at any time before final payment under this contract.
(c) If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the Government, the Contracting Officer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement.
(d) If a stop-work order is not canceled and the work covered by the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.
(End of clause)
Alternate I (Apr 1984). If this clause is inserted in a cost-reimbursement contract, substitute in paragraph (a)(2) the words "the Termination clause of this contract" for the words "the Default, or the Termination for Convenience of the Government clause of this contract." In paragraph (b) substitute the words "an equitable adjustment in the delivery schedule, the estimated cost, the fee, or a combination thereof, and in any other terms of the contract that may be affected" for the words "an equitable adjustment in the delivery schedule or contract price, or both."