High RiskFARtermination

52.249-4Termination for Convenience of the Government (Services) (Short Form).

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.249-4 — Termination for Convenience of the Government (Services) (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

52.249-4 Termination for Convenience of the Government (Services) (Short Form). As prescribed in 49.502(c), insert the following clause in solicitations and contracts for services, regardless of value, when a fixed-price contract is contemplated and the Contracting Officer determines that because of the kind of services required, the successful offeror will not incur substantial charges in preparation for and in carrying out the contract, and would, if terminated for the convenience of the Government, limit termination settlement charges to services rendered before the date of termination: Termination for Convenience of the Government (Services) (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 Government shall be liable only for payment under the payment provisions of this contract for services rendered before the effective date of termination. (End of clause)

Source: eCFR, 48 CFR 52.249-4 (https://www.ecfr.gov/current/title-48/section-52.249-4)

Compliance Checklist

  • As prescribed in 49.502(c), insert the following clause in solicitations and contracts for services, regardless of value, when a fixed-price contract is contemplated and the Contracting Officer determines that because of the kind of services required, the successful offeror will not incur substantial charges in preparation for and in carrying out the contract, and would, if terminated for the convenience of the Government, limit termination settlement charges to services rendered before the date of termination: Termination for Convenience of the Government (Services) (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 Government shall be liable only for payment under the payment provisions of this contract for services rendered before the effective date of termination.

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.