Clause Rescinded
This clause was rescinded effective March 18, 2026 by Contract Policy Memo 26-C-13. Do not include this clause in new solicitations or contracts. Essential requirements previously covered by this clause should be included in the Statement of Work or Performance Work Statement.
For current DAF acquisition guidance, refer to the DAF Contracting Compass.
As prescribed in DAFFARS
5317.7406, insert the following clause in solicitations and
contracts:
LONG LEAD LIMITATION
OF GOVERNMENT LIABILITY (JUL 2023)
(a) In performing this contract, the contractor is
not authorized to make expenditures or incur obligations exceeding
$[
insert dollar amount
].
(b) The maximum amount for which the Government
shall be liable if this contract is terminated (i.e., costs already
incurred and those associated with termination) is $[
insert
dollar amount
].
(c) The contractor shall notify the contracting
officer in writing whenever there is reason to believe that, within
the next 60 days, the costs expected to be incurred under this
contract, when added to all costs previously incurred, will exceed
75 percent of the total amount allotted to the contract by the
Government. The notice shall state the estimated amount of
additional funds required to continue performance for the specified
schedule period, limited by the not-to-exceed contract value.
(d) Sixty days before the end of the specified
schedule period, the contractor shall give notice to the
contracting officer of the estimated amount of additional funds
required to continue long lead contract performance, when the funds
will be needed, and any agreed to extension period specified in the
Schedule.
(End of clause)
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Regulatory Stack
No supplementary regulatory layers found for this clause.
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.
No version history available from eCFR.
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