52.241-10 — Termination Liability.
Researched by the BidStride Research Team
What This Clause Requires
FAR 52.241-10 — Termination 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
52.241-10 Termination Liability. As prescribed in 41.501(d)(4), insert a clause substantially the same as the following: Termination Liability (FEB 1995) (a) If the Government discontinues utility service under this contract before completion of the facilities cost recovery period specified in paragraph (b) of this clause, in consideration of the Contractor furnishing and installing at its expense, the new facility described herein, the Government shall pay termination charges, calculated as set forth in this clause. (b) Facility cost recovery period. The period of time, not exceeding the term of this contract, during which the net cost of the new facility, shall be recovered by the Contractor is— ____ months. [ Insert negotiated duration. ] (c) Net facility cost. The cost of the new facility, less the agreed upon salvage value of such facility, is— $____. [ Insert appropriate dollar amount. ] (d) Monthly facility cost recovery rate. The monthly facility cost recovery rate which the Government shall pay the Contractor whether or not service is received is— $____. [ Divide the net facility cost in paragraph (c) of this clause by the facility's cost recovery period in paragraph (b) of this clause and insert the resultant figure. ] (e) Termination charges. Termination charges = $[ Multiply the remaining months of the facility's cost recovery period specified in paragraph (b) of this clause by the monthly facility cost recovery rate in paragraph (d) of this clause and insert the resultant figure. ] (f) If the Contractor has recovered its capital costs at the time of termination there will be no termination liability charge. (End of clause) [59 FR 67025, Dec. 28, 1994]
Compliance Checklist
- As prescribed in 41.501(d)(4), insert a clause substantially the same as the following: Termination Liability (FEB 1995) (a) If the Government discontinues utility service under this contract before completion of the facilities cost recovery period specified in paragraph (b) of this clause, in consideration of the Contractor furnishing and installing at its expense, the new facility described herein, the Government shall pay termination charges, calculated as set forth in this clause.
- The period of time, not exceeding the term of this contract, during which the net cost of the new facility, shall be recovered by the Contractor is— ____ months.
- The monthly facility cost recovery rate which the Government shall pay the Contractor whether or not service is received is— $____.
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
FAR 52.241-10 (Termination Liability.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the general category.
FAR 52.241-10 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.
Whether FAR 52.241-10 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.
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.