FAR 46.805—Contract clauses.
Plain-English Summary
FAR 46.805 tells contracting officers which contract clauses to include when the government is buying items or services that are subject to the quality assurance and liability framework in FAR Subpart 46.8. It covers solicitations and contracts above the simplified acquisition threshold, and it distinguishes among contracts for non-high-value end items, high-value items, both types of end items, services, and mixed contracts that include both services and end items. The section also explains how to handle line-item identification for high-value items in the contract schedule so the liability rules apply clearly to the right deliverables. For acquisitions at or below the simplified acquisition threshold, the clauses are generally not required, but the contracting officer may still include certain clauses if the contractor specifically asks and the government can negotiate an appropriate price reduction. In practice, this section is about making sure the right limitation-of-liability clause is inserted up front, matched to the type of supply or service being acquired, so both parties know how defects, failures, or other liability issues will be handled.
Key Rules
Use clauses above SAT
If the contract is expected to exceed the simplified acquisition threshold and is subject to FAR Subpart 46.8, the contracting officer must insert the prescribed clause or combination of clauses in both the solicitation and the contract.
Non-high-value end items
For contracts requiring delivery of end items that are not high-value items, the contracting officer must use FAR 52.246-23, Limitation of Liability.
High-value end items
For contracts requiring delivery of high-value items, the contracting officer must use FAR 52.246-24, Limitation of Liability-High Value Items.
Mixed end-item contracts
If the contract includes both high-value items and other end items, the contracting officer must include both the standard limitation-of-liability clause and Alternate I of FAR 52.246-24, and must clearly identify the high-value line items in the schedule.
Service contracts
For contracts requiring performance of services, the contracting officer must insert FAR 52.246-25, Limitation of Liability-Services.
Mixed services and supplies
If the contract includes both services and end items, the contracting officer must include the services clause plus the appropriate end-item clause or clauses, and must clearly identify any high-value line items in the schedule.
Below SAT is optional
For acquisitions at or below the simplified acquisition threshold, these clauses are not required, but the contracting officer may include the clause for non-high-value end items or services if the contractor specifically requests it and the government agrees to an appropriate price reduction.
Responsibilities
Contracting Officer
Determine whether the acquisition is subject to FAR Subpart 46.8 and whether the expected contract amount exceeds the simplified acquisition threshold. Insert the correct limitation-of-liability clause or combination of clauses in the solicitation and contract, and clearly identify high-value line items in the schedule when required. For acquisitions at or below the simplified acquisition threshold, decide whether to include the optional clause(s) only if the contractor specifically requests them and negotiate any appropriate price reduction.
Contractor
Review the solicitation and contract to confirm the correct clause set is included, especially in mixed contracts and where high-value items are involved. If the acquisition is at or below the simplified acquisition threshold, the contractor may specifically request inclusion of the clause for non-high-value end items or services and may negotiate the associated price reduction.
Agency
Ensure acquisition planning and contract drafting support proper clause selection under FAR Subpart 46.8. Maintain clear internal definitions and schedule structure so high-value items are identified consistently and the correct liability framework is applied.
Practical Implications
Clause selection is not one-size-fits-all; the type of deliverable drives which limitation-of-liability clause applies, so errors in classification can create contract administration problems later.
High-value items must be clearly identified in the schedule, or the parties may dispute which line items are subject to the special liability treatment.
Mixed contracts need careful drafting because services and supplies can require multiple clauses at once; omitting one clause can leave a gap in risk allocation.
Below the simplified acquisition threshold, the clauses are generally optional, but contractors should know they can ask for them and the government may trade that protection for a lower price.
Contracting officers should verify that the solicitation and final contract match, since the rule requires insertion in both documents when applicable.
Official Regulatory Text
(a) Contracts that exceed the simplified acquisition threshold. The contracting officer shall insert the appropriate clause or combination of clauses specified in paragraphs (a)(1) through (a)(5) of this section in solicitations and contracts when the contract amount is expected to be in excess of the simplified acquisition threshold and the contract is subject to the requirements of this subpart as indicated in 46.801 : (1) In contracts requiring delivery of end items that are not high-value items, insert the clause at 52.246-23 , Limitation of Liability. (2) In contracts requiring delivery of high-value items, insert the clause at 52.246-24 , Limitation of Liability-High Value Items. (3) In contracts requiring delivery of both high-value items and other end items, insert both clauses prescribed in (a)(1) and (a)(2) of this section, AlternateI of the clause at 52.246-24 , and identify clearly in the contract schedule the line items designated as high-value items. (4) In contracts requiring the performance of services, insert the clause at 52.246-25 , Limitation of Liability-Services. (5) In contracts requiring both the performance of services and the delivery of end items, insert the clause prescribed in paragraph (a)(4) of this section and the appropriate clause or clauses prescribed in paragraph (a)(1), (2), or (3) of this section, and identify clearly in the contract schedule any high-value line items. (b) Acquisitions at or below the simplified acquisition threshold. The clauses prescribed by paragraph (a) of this section are not required for contracts at or below the simplified acquisition threshold. However, in response to a contractor’s specific request, the contracting officer may insert the clauses prescribed in paragraph (a)(1) or (a)(4) of this section in a contract at or below the simplified acquisition threshold and may obtain any price reduction that is appropriate.