High RiskFARtermination

52.249-1Termination for Convenience of the Government (Fixed-Price) (Short Form).

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.249-1 — Termination for Convenience of the Government (Fixed-Price) (Short Form).. 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

52.249-1 Termination for Convenience of the Government (Fixed-Price) (Short Form). As prescribed in 49.502(a)(1), insert the following clause: Termination for Convenience of the Government (Fixed-Price) (Short Form) (APR 1984) The Contracting Officer, by written notice, may terminate this contract, in whole or in part, when it is in the Government's interest. If this contract is terminated, the rights, duties, and obligations of the parties, including compensation to the Contractor, shall be in accordance with part 49 of the Federal Acquisition Regulation in effect on the date of this contract. (End of clause) Alternate I (APR 1984). If the contract is for dismantling, demolition, or removal of improvements, designate the basic clause as paragraph (a) and add the following paragraph (b): (b) Upon receipt of the termination notice, if title to property is vested in the Contractor under this contract, it shall revest in the Government regardless of any other clause of the contract, except for property that the Contractor (a) disposed of by bona fide sale or (b) removed from the site. [48 FR 42478, Sept. 19, 1983, as amended at 71 FR 57369, Sept. 28, 2006]

Source: eCFR, 48 CFR 52.249-1 (https://www.ecfr.gov/current/title-48/section-52.249-1)

Compliance Checklist

  • If this contract is terminated, the rights, duties, and obligations of the parties, including compensation to the Contractor, shall be in accordance with part 49 of the Federal Acquisition Regulation in effect on the date of this contract.
  • If the contract is for dismantling, demolition, or removal of improvements, designate the basic clause as paragraph (a) and add the following paragraph (b): (b) Upon receipt of the termination notice, if title to property is vested in the Contractor under this contract, it shall revest in the Government regardless of any other clause of the contract, except for property that the Contractor (a) disposed of by bona fide sale or (b) removed from the site.

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.