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section49.505

Other termination clauses

Overview

This section prescribes specific contract clauses for personal services, excusable delays in cost-reimbursement and time-and-material contracts, and unique requirements for communication service contracts.

Key Rules

  • Personal Services: The Contracting Officer (CO) must insert clause 52.249-12 in all solicitations and contracts for personal services.
  • Excusable Delays: Clause 52.249-14 must be included in all cost-reimbursement contracts (supplies, services, construction, and R&D on a fee basis), as well as in all time-and-materials and labor-hour contracts.
  • Communication Services: The FAR does not provide a standard clause for common carrier communication services; instead, individual agencies are required to develop and prescribe their own clauses to address specific agency needs.

Practical Implications

  • Contractors under cost-reimbursement, T&M, or labor-hour arrangements are protected from being placed in default for delays beyond their control (e.g., acts of God, strikes) provided the Excusable Delays clause is present.
  • Agencies procuring common carrier services must ensure their internal agency supplements (such as DFARS or GSAM) contain the appropriate termination and cancellation language, as the standard FAR is silent on these specific terms.

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