FAR 36.510—Operations and storage areas.
Plain-English Summary
FAR 36.510 tells contracting officers when to include the clause at 52.236-10, Operations and Storage Areas, in construction-related solicitations and contracts. It applies to fixed-price construction contracts and fixed-price contracts for dismantling, demolition, or removal of improvements, and it distinguishes between actions expected to exceed the simplified acquisition threshold and those at or below it. The rule is mandatory above the simplified acquisition threshold and permissive at or below it. In practice, this section matters because it ensures the Government can control how contractors use project sites for operations, staging, and storage, which affects safety, site access, property protection, and orderly performance. It also helps contracting officers apply the clause consistently based on contract type and dollar threshold, rather than inserting it indiscriminately into every construction-related procurement.
Key Rules
Mandatory above threshold
The contracting officer must insert clause 52.236-10 in solicitations and contracts when a fixed-price construction contract or a fixed-price dismantling, demolition, or removal of improvements contract is contemplated and the expected contract amount exceeds the simplified acquisition threshold.
Permissive at or below threshold
When the same types of fixed-price work are contemplated but the expected contract amount is at or below the simplified acquisition threshold, the contracting officer may insert the clause. This gives the CO discretion to use the clause when site control or storage management is still important.
Applies to fixed-price work only
This section is limited to fixed-price construction and fixed-price dismantling, demolition, or removal of improvements contracts. It does not create a blanket requirement for other contract types or for non-construction services.
Clause insertion governs site use
The practical effect of the rule is to control operations and storage areas on the project site through the contract clause. That clause is used to address where contractors may stage materials, store equipment, and conduct operations.
Threshold determination is critical
The simplified acquisition threshold is the key trigger for whether the clause is required or optional. Contracting officers must determine the expected contract amount before award and apply the rule based on that expected value.
Responsibilities
Contracting Officer
Determine whether the contemplated procurement is a fixed-price construction contract or a fixed-price dismantling, demolition, or removal of improvements contract, estimate the contract amount, and insert clause 52.236-10 when the expected amount exceeds the simplified acquisition threshold. The contracting officer may also choose to include the clause at or below the threshold when appropriate.
Contractor
Comply with the Operations and Storage Areas clause when it is included in the solicitation or contract, including any restrictions or directions on where operations and storage may occur on the site.
Agency
Use the clause consistently in covered procurements and support contracting officers with acquisition planning and threshold determinations so the clause is included when required.
Practical Implications
For contracting officers, the main day-to-day task is deciding whether the clause is mandatory or optional based on contract type and expected dollar value before issuing the solicitation.
A common pitfall is overlooking the clause in fixed-price demolition or removal contracts, even though those are specifically covered when the threshold is exceeded.
Another risk is using the wrong threshold analysis; the trigger is the expected contract amount, so the decision should be made at the time of solicitation and award planning.
For contractors, the clause can affect site logistics, material staging, and access planning, so it should be reviewed early to avoid performance delays or unauthorized storage.
Because the clause is about operations and storage areas, it often ties directly to safety, security, and property protection requirements on the jobsite.
Official Regulatory Text
The contracting officer shall insert the clause at 52.236-10 , Operations and Storage Areas, in solicitations and contracts when a fixed-price construction contract or a fixed-price dismantling, demolition, or removal of improvements contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold. The contracting officer may insert the clause in solicitations and contracts when a fixed-price construction or a fixed-price contract for dismantling, demolition, or removal of improvements is contemplated and the contract amount is expected to be at or below the simplified acquisition threshold.