What is FAR 52.216-24?

FAR 52.216-24 (Limitation of Government Liability.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the contract-types category.

When is FAR 52.216-24 required?

FAR 52.216-24 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.

Does FAR 52.216-24 flow down to subcontractors?

Whether FAR 52.216-24 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

Medium RiskFARcontract-types

52.216-24 — Limitation of Government Liability.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.216-24 — Limitation of Government Liability.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.216-24 Limitation of Government Liability. As prescribed in 16.603-4(b)(2), insert the following clause in solicitations and contracts when a letter contract is contemplated: Limitation of Government Liability (APR 1984) (a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding ___ dollars. (b) The maximum amount for which the Government shall be liable if this contract is terminated is ___ dollars. (End of clause)
Source: eCFR, 48 CFR 52.216-24 (https://www.ecfr.gov/current/title-48/section-52.216-24)

Compliance Checklist

(b) The maximum amount for which the Government shall be liable if this contract is terminated is ___ dollars.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.