Overview
This section prescribes the specific contract clauses that Contracting Officers must include in fixed-price solicitations and contracts to establish the government’s right to terminate for default. It categorizes these requirements based on the nature of the procurement—supplies and services, research and development, or construction—and the contract's value relative to the simplified acquisition threshold.
Key Rules
- Threshold Requirements: The inclusion of default clauses (52.249-8, 52.249-9, and 52.249-10) is generally mandatory for fixed-price contracts expected to exceed the simplified acquisition threshold.
- Discretionary Application: Contracting Officers may include these clauses in contracts at or below the simplified acquisition threshold if warranted by risks such as poor quality history, essential completion dates, or the need for dedicated key personnel.
- Supplies and Services: Uses clause 52.249-8; requires Alternate I if the contract involves transportation services.
- Research and Development (R&D): Uses clause 52.249-9; however, it is specifically excluded for contracts with educational or nonprofit institutions performing on a no-profit basis.
- Construction: Uses clause 52.249-10; requires Alternate I for dismantling, demolition, or removal of improvements.
- National Emergencies: Provides for the use of Alternates II and III for construction or demolition contracts awarded during periods of national emergency.
Practical Implications
- Risk Management: The government uses these clauses as a primary enforcement mechanism to ensure performance; contractors should note that even small-dollar contracts may include these "heavy-duty" default provisions if the government deems the delivery schedule or quality to be high-risk.
- Tailored Provisions: Parties must ensure the correct Alternate is used for specialized work (like demolition or transportation), as these Alternates modify the standard default procedures to fit the specific industry context.