FAR 49.501—General.
Plain-English Summary
FAR 49.501 is the gateway provision for the FAR termination subpart. It explains that this subpart contains the principal contract termination clauses used in federal contracts, and it identifies an important exception: the subpart does not apply to contracts that use the simplified acquisition clause at 52.213-4, Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services). It also recognizes that agencies may, in appropriate cases, authorize special-purpose termination clauses, but only when those clauses are consistent with the FAR chapter. In practice, this section tells contracting personnel which termination clause framework applies, when the standard termination clauses are not used, and when an agency may tailor termination language for a particular acquisition. For contractors, it signals that termination rights and procedures depend heavily on the clause actually incorporated into the contract, so clause selection matters at award and during performance.
Key Rules
Principal termination clauses
This subpart provides the main FAR termination clauses used in contracts. Those clauses establish the default framework for how terminations for convenience or default are handled when a contract is terminated.
Simplified acquisition exception
The subpart does not apply to contracts that use FAR 52.213-4. If that clause is in the contract, the termination rules in this subpart are not the governing termination framework.
Special-purpose clauses allowed
Agencies may authorize special-purpose termination clauses in appropriate cases. Any such clause must be consistent with the FAR chapter, so agencies cannot create termination language that conflicts with FAR policy or requirements.
Clause selection controls
The termination rights and procedures applicable to a contract depend on the clause incorporated into the contract. Parties must look to the actual contract language, not just the general FAR subpart, to determine the governing termination provisions.
Responsibilities
Contracting Officer
Select and incorporate the correct termination clause for the acquisition, determine whether the simplified acquisition clause or a special-purpose clause applies, and ensure any special-purpose clause is consistent with the FAR chapter.
Agency
Authorize special-purpose termination clauses only in appropriate cases and only when those clauses comply with FAR requirements and policy.
Contractor
Review the contract clause set to understand which termination framework applies, and rely on the incorporated clause—not the general subpart alone—to assess termination rights, obligations, and risk.
Practical Implications
This section is mainly a clause-selection rule, so the most important day-to-day issue is identifying the termination clause actually in the contract.
A common pitfall is assuming all contracts are governed by the same FAR termination rules; simplified acquisitions under 52.213-4 are expressly excluded from this subpart.
Another risk is using a special-purpose clause that is not fully consistent with the FAR chapter, which can create enforceability or administration problems.
Contractors should check termination language at award and during modifications, because a change in clause coverage can materially affect settlement rights and procedures.
Contracting officers should document why a special-purpose clause is appropriate and ensure it does not conflict with mandatory FAR provisions.
Official Regulatory Text
This subpart prescribes the principal contract termination clauses. This subpart does not apply to contracts that use the clause at 52.213-4 , Terms and Conditions-Simplified Acquisitions (Other Than Commercial Products and Commercial Services). In appropriate cases, agencies may authorize the use of special purpose clauses, if consistent with this chapter.