Overview
FAR 36.518 mandates the inclusion of a specific oversight clause in all cost-reimbursement construction solicitations and contracts. The section ensures that the government maintains a contractual mechanism for supervising work when the financial risk of performance lies primarily with the agency.
Key Rules
- Mandatory Prescription: The Contracting Officer (CO) must ("shall") insert the clause at FAR 52.236-18, Work Oversight in Cost-Reimbursement Construction Contracts.
- Applicability: The rule applies specifically to solicitations and contracts where a cost-reimbursement contract type is utilized for construction services.
- Scope: It covers the entirety of the project lifecycle from solicitation through contract award.
Practical Implications
- Risk Mitigation: Because cost-reimbursement contracts place the burden of cost overruns on the government, this requirement ensures there is a formal legal basis for the government to oversee and monitor the contractor's progress and efficiency.
- Compliance Checklist: Contracting Officers must ensure this clause is included in the "Contract Clauses" section of the Uniform Contract Format (UCF) to avoid regulatory non-compliance during the procurement of complex construction projects.