FAR 49.505—Other termination clauses.
Plain-English Summary
FAR 49.505 tells contracting officers which termination-related clauses must be included in certain solicitations and contracts, and it also explains one area where the FAR does not prescribe a governmentwide clause. It covers three specific subjects: personal service contracts, excusable delays, and communication service contracts with common carriers. For personal service contracts, the rule requires use of the Termination (Personal Services) clause. For cost-reimbursement contracts, and also for time-and-materials and labor-hour contracts, it requires use of the Excusable Delays clause in the listed contract types. For communication service contracts, the FAR leaves cancellation or termination language to agency-level prescription because of special requirements unique to those services. In practice, this section matters because it determines when termination language must be inserted, which clause applies, and when agencies must develop their own clause instead of relying on a FAR-prescribed one.
Key Rules
Personal services clause required
For solicitations and contracts for personal services, the contracting officer must insert FAR 52.249-12, Termination (Personal Services). The rule applies whenever the procurement is for personal services as defined and permitted under FAR Part 37.
Excusable delays clause required
For supplies, services, construction, and research and development on a fee basis when a cost-reimbursement contract is contemplated, the contracting officer must insert FAR 52.249-14, Excusable Delays. This clause must also be inserted in time-and-materials and labor-hour contracts.
Applies at solicitation and contract stage
The clause prescriptions are not limited to awarded contracts; they must be included in both solicitations and contracts when the stated conditions are met. This ensures offerors know the termination framework before award.
No FAR clause for carrier services
For communication service contracts with common carriers, the FAR does not prescribe a governmentwide clause for cancellation or termination of orders. The reason is that special agency requirements govern these services.
Agency-level clause required for carriers
Although the FAR does not provide a standard clause for communication service contracts with common carriers, each agency contracting for these services must prescribe an appropriate clause at the agency level.
Responsibilities
Contracting Officer
Identify whether the acquisition is for personal services, a cost-reimbursement effort, a time-and-materials contract, a labor-hour contract, or a communication service contract with a common carrier, and insert the correct termination or excusable delays clause when required.
Agency
For communication service contracts with common carriers, develop and prescribe an appropriate cancellation or termination clause at the agency level to address the special requirements applicable to those services.
Contractor
Review the solicitation and contract to understand which termination-related clause applies, assess the risk allocation for delays or termination, and price or plan performance accordingly.
Acquisition Team
Ensure the contract type and service category are correctly identified early in the acquisition planning process so the proper clause is included and no required clause is omitted.
Practical Implications
This section is mainly a clause-selection rule, so the biggest day-to-day risk is using the wrong termination language or forgetting to include a required clause in the solicitation or contract.
Contract type matters a great deal: the excusable delays clause is required for cost-reimbursement, time-and-materials, and labor-hour contracts, but not as a general rule for every contract type.
Personal services contracts require special attention because they are treated differently under FAR Part 37, and the termination clause must match that contract category.
For communication services with common carriers, contracting officers cannot rely on a standard FAR clause and must check agency supplements or internal policy for the required language.
A common pitfall is assuming that all termination-related clauses are interchangeable; they are not, and the wrong clause can create disputes over delay relief, cancellation rights, or termination procedures.
Official Regulatory Text
(a) Personal service contracts. The contracting officer shall insert the clause at 52.249-12 , Termination (Personal Services), in solicitations and contracts for personal services (see part 37 ). (b) Excusable delays. The contracting officer shall insert the clause at 52.249-14 , Excusable Delays, in solicitations and contracts for supplies, services, construction, and research and development on a fee basis, when a cost-reimbursement contract is contemplated. The contracting officer shall also insert the clause in time-and-material contracts, and labor-hour contracts. (c) Communication service contracts. This regulation does not prescribe a clause for the cancellation or termination of orders under communication service contracts with common carriers because of special agency requirements that apply to these services. An appropriate clause, however, shall be prescribed at agency level, within those agencies contracting for these services.