RFO
RFO Version Available
The Revolutionary FAR Overhaul has published a revised version of this clause. The RFO version supersedes the eCFR text below for contracts using the RFO model; see the RFO deviation for applicability.
View RFO version
DEV
This clause is modified by 2 active class deviations
- 2026-O0045 — DFARS RFO Implementation (Part 16)
- 2026-O0027 — DFARS RFO Implementation (Part 17)
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)
RFO
Prescription superseded under the RFO
The prescription shown below is from the codified eCFR. The Revolutionary FAR Overhaul relocates this clause's prescription as follows:
-
216.603-4→217.7406(prescriptive text also revised)
See the deviation memorandum for the current prescription authority.
View deviation: 2026-O0045 → · View deviation: 2026-O0027 →R-DFARS Prescription Source
This clause is prescribed in the R-DFARS by the following deviations:
-
2026-O0045
— DFARS RFO Implementation (Part 16)
(DFARS Part 216)
Add clause 52.216-24
-
2026-O0027
— DFARS RFO Implementation (Part 17)
(DFARS Part 217)
Add clause 52.216-24
16.603-4(b)
(b) In addition, the contracting officer shall insert the following clauses in solicitations and contracts when a letter contract is contemplated:
(1) The clause at 52.216-23, Execution and Commencement of Work, except that this clause may be omitted from letter contracts awarded on SF 26;
(2) The clause at 52.216-24, Limitation of Government Liability, with dollar amounts completed in a manner consistent with 16.603-2(d); and
(3) The clause at 52.216-25, Contract Definitization, with its paragraph (b) completed in a manner consistent with 16.603-2(c). If at the time of entering into the letter contract, the contracting officer knows that the definitive contract will be based on adequate price competition or will otherwise meet the criteria of 15.403-1 for not requiring submission of certified cost or pricing data, the words "and certified cost or pricing data in accordance with FAR 15.408, Table 15-1 supporting its proposal" may be deleted from paragraph (a) of the clause. If the letter contract is being awarded on the basis of price competition, the contracting officer shall use the clause with its Alternate I.
(1) The clause at 52.216-23, Execution and Commencement of Work, except that this clause may be omitted from letter contracts awarded on SF 26;
(2) The clause at 52.216-24, Limitation of Government Liability, with dollar amounts completed in a manner consistent with 16.603-2(d); and
(3) The clause at 52.216-25, Contract Definitization, with its paragraph (b) completed in a manner consistent with 16.603-2(c). If at the time of entering into the letter contract, the contracting officer knows that the definitive contract will be based on adequate price competition or will otherwise meet the criteria of 15.403-1 for not requiring submission of certified cost or pricing data, the words "and certified cost or pricing data in accordance with FAR 15.408, Table 15-1 supporting its proposal" may be deleted from paragraph (a) of the clause. If the letter contract is being awarded on the basis of price competition, the contracting officer shall use the clause with its Alternate I.
DFARS Supplementary Guidance
216.603-4
(b)(2) See 217.7405
(a) for additional guidance regarding use of the clause at FAR 52.216-24, Limitation of Government Liability.
(3) Use the clause at 252.217-7027, Contract Definitization, in accordance with its prescription 217.7406 (b), instead of the clause at FAR 52.216-25, Contract Definitization.
(a) for additional guidance regarding use of the clause at FAR 52.216-24, Limitation of Government Liability.
(3) Use the clause at 252.217-7027, Contract Definitization, in accordance with its prescription 217.7406 (b), instead of the clause at FAR 52.216-25, Contract Definitization.
Prescription data sourced from eCFR as of 2026-06-10 03:16 UTC.
Cross-references within the prescription are not resolved automatically.
Regulatory Stack
The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.
RFO
RFO Version
Overhauled clause text
The Revolutionary FAR Overhaul publishes a revised version of this clause. See the RFO Version tab for the controlling authority under the RFO model.
R-DFARS
R-DFARS Prescription
Per Deviation 2026-O0045 (DFARS Part 216/217)
2026-O0045: DFARS RFO Implementation (Part 16) — DFARS Part 216
2026-O0027: DFARS RFO Implementation (Part 17) — DFARS Part 217
2026-O0027: DFARS RFO Implementation (Part 17) — DFARS Part 217
FAR
FAR Prescription
⚠ May be superseded by RFO
16.603-4(b)
(b) In addition, the contracting officer shall insert the following clauses in solicitations and contracts when a letter contract is contemplated:
(1) The clause at 52.216-23, Execution and Commencement of Work, except that this clause may be omitted from letter contracts awarded on SF 26;
(2) The clause at 52.216-24, Limitation of Government Liability, with dollar amounts completed in a manner consistent with 16.603-2(d); and
(3) The clause at 52.216-25, Contract Definitization, with its paragraph (b) completed in a manner consistent with 16.603-2(c). If at the time of entering into the letter contract, the contracting officer knows that the definitive contract will be based on adequate price competition or will otherwise meet the criteria of 15.403-1 for not requiring submission of certified cost or pricing data, the words "and certified cost or pricing data in accordance with FAR 15.408, Table 15-1 supporting its proposal" may be deleted from paragraph (a) of the clause. If the letter contract is being awarded on the basis of price competition, the contracting officer shall use the clause with its Alternate I.
(1) The clause at 52.216-23, Execution and Commencement of Work, except that this clause may be omitted from letter contracts awarded on SF 26;
(2) The clause at 52.216-24, Limitation of Government Liability, with dollar amounts completed in a manner consistent with 16.603-2(d); and
(3) The clause at 52.216-25, Contract Definitization, with its paragraph (b) completed in a manner consistent with 16.603-2(c). If at the time of entering into the letter contract, the contracting officer knows that the definitive contract will be based on adequate price competition or will otherwise meet the criteria of 15.403-1 for not requiring submission of certified cost or pricing data, the words "and certified cost or pricing data in accordance with FAR 15.408, Table 15-1 supporting its proposal" may be deleted from paragraph (a) of the clause. If the letter contract is being awarded on the basis of price competition, the contracting officer shall use the clause with its Alternate I.
DFARS
DFARS Supplement (eCFR)
⚠ May be superseded by RFO
216.603-4
(b)(2) See 217.7405
(a) for additional guidance regarding use of the clause at FAR 52.216-24, Limitation of Government Liability.
(3) Use the clause at 252.217-7027, Contract Definitization, in accordance with its prescription 217.7406 (b), instead of the clause at FAR 52.216-25, Contract Definitization.
(a) for additional guidance regarding use of the clause at FAR 52.216-24, Limitation of Government Liability.
(3) Use the clause at 252.217-7027, Contract Definitization, in accordance with its prescription 217.7406 (b), instead of the clause at FAR 52.216-25, Contract Definitization.
Version History
Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.
2 versions tracked from 2017-01-01 to 2018-01-24.
JAN 2018
January 24, 2018
CURRENT
SUBSTANTIVE
Removed in this version
Added in this version
Unchanged
JAN 2017 (previous)
JAN 2018 (current)
1 added, 1 removed
(a)
(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding __ dollars.
(a)
(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding ___ dollars.
1 added, 1 removed
(b)
(b) The maximum amount for which the Government shall be liable if this contract is terminated is __ dollars. (End of clause)
(b)
(b) The maximum amount for which the Government shall be liable if this contract is terminated is ___ dollars. (End of clause)
JAN 2017
January 1, 2017
SUBSTANTIVE
Earliest version available from the eCFR
RFO Version
Comparison of the codified eCFR text against the Revolutionary FAR Overhaul revision. Highlights show additions (green) and deletions (red, struck through).
Clause Text
Substantive changes. The RFO version differs materially from the eCFR text.
eCFR (codified)
RFO (implemented)
Unchanged
52.216-24 Limitation of Government Liability.
eCFR (codified)
RFO (implemented)
1 added, 11 removed
As prescribed in 16.603-4(b)(2), insert the following clause in solicitations and contracts when a letter contract is contemplated:
As prescribed in 16.603-4(b)(2), insert the following clause:
1 added, 1 removed
(a)
(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding ___ dollars.
(a)
(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding __________ dollars.
1 added, 1 removed
(b)
(b) The maximum amount for which the Government shall be liable if this contract is terminated is ___ dollars.
(b)
(b) The maximum amount for which the Government shall be liable if this contract is terminated is ___________ dollars.
Applied to DoD contracts via
Class Deviation 2026-O0045 (effective 2026-03-16),
Class Deviation 2026-O0027 (effective 2026-02-01)
.
Prescription
Substantive changes. The RFO prescription differs materially from the eCFR prescription.
eCFR (codified)
RFO (implemented)
Unchanged
52.216-24 Limitation of Government Liability.: Prescription
eCFR (codified)
RFO (implemented)
54 added, 16 removed
(b)
(b) In addition, the contracting officer shall insert the following clauses in solicitations and contracts when a letter contract is contemplated:
(b)
(d) The maximum liability of the Government inserted in the clause at 52.216-24, Limitation of Government Liability, must be the estimated amount necessary to cover the contractor’s requirements for funds before definitization. However, it must not exceed 50 percent of the estimated cost of the definitive contract unless approved in advance by the official that authorized the letter contract.
24 removed
(1)
(1) The clause at 52.216-23, Execution and Commencement of Work, except that this clause may be omitted from letter contracts awarded on SF 26;
(1)
20 removed
(2)
(2) The clause at 52.216-24, Limitation of Government Liability, with dollar amounts completed in a manner consistent with 16.603-2(d); and
(2)
112 removed
(3)
(3) The clause at 52.216-25, Contract Definitization, with its paragraph (b) completed in a manner consistent with 16.603-2(c). If at the time of entering into the letter contract, the contracting officer knows that the definitive contract will be based on adequate price competition or will otherwise meet the criteria of 15.403-1 for not requiring submission of certified cost or pricing data, the words "and certified cost or pricing data in accordance with FAR 15.408, Table 15-1 supporting its proposal" may be deleted from paragraph (a) of the clause. If the letter contract is being awarded on the basis of price competition, the contracting officer shall use the clause with its Alternate I.
(3)
Active Class Deviations
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