52.216-24 Limitation of Government Liability.
Revolutionary FAR Overhaul (RFO) Version
A revised version of this clause has been published under the Revolutionary FAR Overhaul (EO 14275). The RFO version supersedes the eCFR text below for contracts using the RFO FAR model. The RFO text is not duplicated here; see the clause page for a side-by-side comparison: https://part52.dev/clause/52-216-24/#rfo
Prescription and Applicability
FAR Prescription, 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.
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.
Current Text
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)
Active Class Deviations Affecting This Clause
Class Deviation 2026-O0027, DFARS RFO Implementation (Part 17)
- Status: Active
- Date Issued: 2026-02-01
- Change type: MODIFIED
- Action: Add clause 52.216-24
Class Deviation 2026-O0045, DFARS RFO Implementation (Part 16)
- Status: Active
- Date Issued: 2026-03-16
- Change type: MODIFIED
- Action: Add clause 52.216-24
Suggested Questions
You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?