FAR 42.1303—Stop-work orders.
Plain-English Summary
FAR 42.1303 explains when and how the Government may use a stop-work order in negotiated fixed-price or cost-reimbursement supply, research and development, and service contracts. It covers the situations where a temporary work suspension may be appropriate, the approval required before issuance, and the rule that stop-work orders are not a substitute for a termination notice once termination has been decided. The section also describes what a stop-work order should contain, the contracting officer’s duty to promptly discuss and potentially revise the order with the contractor, and the Government’s obligation to take follow-on action before the order expires. In practice, this provision gives the Government a controlled way to pause performance while it decides whether to terminate, cancel the pause, or extend it by agreement. For contractors, it is a cost, schedule, and subcontract management trigger that requires immediate attention to avoid unnecessary expense and preserve rights. For contracting officers, it is a procedural safeguard that requires higher-level approval, clear instructions, and timely resolution.
Key Rules
Permitted contract types
Stop-work orders may be used only in negotiated fixed-price or cost-reimbursement supply, research and development, or service contracts. The section is aimed at situations where a temporary work stoppage may be needed for reasons such as technological advancement, production or engineering breakthroughs, or program realignment.
Use only when suspension is needed
A stop-work order is generally appropriate only when the Government needs to suspend work while it makes a decision and a supplemental agreement to suspend performance is not feasible. It is a temporary management tool, not a routine substitute for contract modification.
Higher-level approval required
Issuance of a stop-work order must be approved above the contracting officer level. This adds oversight because the order can disrupt performance, affect costs, and create downstream impacts on schedule and subcontracting.
Not a termination substitute
Once the Government has decided to terminate, it must issue the proper termination notice rather than use a stop-work order. The stop-work authority is for temporary suspension pending a decision, not for delaying the formal termination process.
Required order content
The stop-work order should identify the work to be suspended, instruct the contractor on whether to continue issuing orders for materials or services, address subcontract actions, and include suggestions for minimizing costs. Clear instructions help reduce avoidable expense and confusion during the suspension.
Prompt discussion and possible revision
After issuing the order, the contracting officer should promptly discuss it with the contractor and modify it if needed based on that discussion. This ensures the order is practical, understood, and tailored to the actual work and cost risks involved.
Timely follow-on action
Before the stop-work order expires, the contracting officer must act to terminate the contract, cancel the order, or extend the order if necessary and if the contractor agrees. Any extension must be made by supplemental agreement, and cancellation requires the same approvals as issuance.
Responsibilities
Contracting Officer
Issue the stop-work order only when appropriate, ensure the required higher-level approval is obtained, draft the order with the required instructions and cost-minimization guidance, promptly discuss the order with the contractor, revise it if needed, and before expiration take action to terminate, cancel, or seek an agreed extension by supplemental agreement.
Higher-Level Approver
Review and approve issuance of the stop-work order before it is released. This approval serves as oversight for the decision to suspend performance.
Contractor
Comply with the stop-work order, manage ongoing performance and subcontract actions according to the order’s instructions, avoid unnecessary new commitments if directed, participate in the prompt discussion with the contracting officer, and take reasonable steps to minimize costs during the suspension.
Subcontractors and Suppliers
Follow the contractor’s direction consistent with the stop-work order and any instructions regarding further orders, suspended work, or cost control measures.
Agency/Program Officials
Support the decision whether to suspend, terminate, cancel, or extend the work stoppage and ensure the stop-work action aligns with program needs and funding or technical decisions.
Practical Implications
A stop-work order is a short-term control measure, so both sides should treat it as urgent and time-sensitive rather than open-ended.
Contractors should immediately assess labor, material, and subcontract commitments to avoid incurring avoidable costs that may be difficult to recover later.
Contracting officers should be careful not to use a stop-work order after the Government has already decided to terminate; that is a common procedural mistake.
The order should be specific enough to prevent confusion about what work stops, what purchases may continue, and how subcontractors should be handled.
Because extensions require contractor agreement and a supplemental agreement, the Government cannot simply keep a stop-work order in place indefinitely without formal follow-up action.
Official Regulatory Text
(a) Stop-work orders may be used, when appropriate, in any negotiated fixed-price or cost-reimbursement supply, research and development, or service contract if work stoppage may be required for reasons such as advancement in the state-of-the-art, production or engineering breakthroughs, or realignment of programs. (b) Generally, a stop-work order will be issued only if it is advisable to suspend work pending a decision by the Government and a supplemental agreement providing for the suspension is not feasible. Issuance of a stop-work order shall be approved at a level higher than the contracting officer. Stop-work orders shall not be used in place of a termination notice after a decision to terminate has been made. (c) Stop-work orders should include- (1) A description of the work to be suspended; (2) Instructions concerning the contractor’s issuance of further orders for materials or services; (3) Guidance to the contractor on action to be taken on any subcontracts; and (4) Other suggestions to the contractor for minimizing costs. (d) Promptly after issuing the stop-work order, the contracting officer should discuss the stop-work order with the contractor and modify the order, if necessary, in light of the discussion. (e) As soon as feasible after a stop-work order is issued, but before its expiration, the contracting officer shall take appropriate action to- (1) Terminate the contract; (2) Cancel the stop-work order (any cancellation of a stop-work order shall be subject to the same approvals as were required for its issuance); or (3) Extend the period of the stop-work order if it is necessary and if the contractor agrees (any extension of the stop-work order shall be by a supplemental agreement).