FAR 52.241-5—Contractor’s Facilities.
Plain-English Summary
FAR 52.241-5, Contractor’s Facilities, allocates responsibility for the facilities a utility or service contractor needs to provide service under a Government contract. It addresses who furnishes, installs, operates, maintains, measures, and removes the facilities; who owns those facilities; who bears the risk of loss or damage; when the contractor must obtain contracting officer approval for installation, construction, or removal; the Government’s grant of a revocable, no-rent permit or license to enter and use Government premises; the contractor’s responsibility for taxes, charges, and liability connected with the facilities; Government access rights and the Government’s ability to restrict access for reasons such as national security or public safety; and the contractor’s duty to remove facilities and restore the site at contract end, including the special rule when termination is caused by the contractor’s fault. In practice, this clause is designed to make clear that the contractor—not the Government—generally bears the cost and operational burden of the physical plant needed to perform the service, while also protecting the Government’s property, operations, and security interests. It is especially important in utility, communications, and other service contracts where contractor-owned equipment must be placed on Government property. The clause also helps avoid disputes by defining site access, installation approvals, and end-of-contract restoration obligations up front.
Key Rules
Contractor supplies facilities
Unless the contract says otherwise, the contractor must furnish, install, operate, and maintain all facilities needed to provide the service. The contractor also must measure the service at the delivery point identified in the Service Specifications.
Contractor keeps title and risk
Title to the facilities remains with the contractor, not the Government. The contractor is responsible for loss or damage to those facilities except to the extent the Government caused the loss or damage through negligent acts or omissions.
CO approval required first
The contractor must obtain contracting officer approval before any equipment installation, construction, or removal. This gives the Government control over changes that could affect safety, security, operations, or property interests.
Revocable site access permit
The Government grants the contractor a free, revocable permit or license to enter the service location for proper contract purposes. The permit covers agreed sites on Government premises needed to install, operate, maintain, and repair the contractor’s facilities, but it is limited by the contract and can be revoked.
Contractor bears taxes and liability
All applicable taxes, other charges, and liability connected with construction, operation, maintenance, and repair of the facilities are the contractor’s responsibility. The Government is not assuming those costs or liabilities by allowing use of its premises.
Access may be restricted
Authorized contractor representatives must be allowed reasonable access to the facilities on Government premises, but the Government may limit or restrict access when necessary, such as for national security or public safety. Access rights are therefore conditional, not absolute.
Removal and restoration at end
Unless the contract says otherwise, the contractor must remove its facilities and restore Government premises to their original condition as nearly as practicable within a reasonable time after contract termination. If termination is due to the contractor’s fault, the Government may keep the facilities in place temporarily while seeking replacement service.
Responsibilities
Contracting Officer
Approve or disapprove proposed equipment installation, construction, or removal before the contractor proceeds. Manage and enforce any limits on site access, and ensure contract terms specify any deviations from the default removal, restoration, or facility-location rules.
Contractor
Provide, install, operate, maintain, measure, and, when required, remove all facilities needed to perform the service. Retain title to the facilities, bear the risk of loss or damage except for Government negligence, obtain prior approval for installation/construction/removal, pay applicable taxes and charges, comply with access restrictions, and restore the site after termination unless the contract provides otherwise.
Government
Allow reasonable access to contractor representatives subject to necessary restrictions, provide the agreed site use through a revocable no-rent permit or license, and be responsible only for loss or damage caused by its negligent acts or omissions. If termination is due to contractor fault, it may keep the facilities in place for a reasonable time while obtaining replacement service.
Practical Implications
This clause puts most facility-related cost and operational risk on the contractor, so pricing should account for installation, maintenance, taxes, site restoration, and potential relocation or removal costs.
Contractors should not assume they can install or modify equipment just because they have a service contract; prior contracting officer approval is required for installation, construction, and removal.
Access to Government premises is not guaranteed at all times. Security, safety, and mission needs can limit entry, so contractors should plan for delays and coordinate access procedures early.
At closeout, the contractor may face significant restoration obligations, including returning the site to near-original condition. Failing to plan for deinstallation and restoration can create unexpected costs and disputes.
If the contract is terminated for contractor fault, the Government may temporarily retain the facilities to avoid service interruption, which can affect removal timing, property control, and transition planning.
Official Regulatory Text
As prescribed in 41.501 (c)(4) , insert a clause substantially the same as the following: Contractor’s Facilities (Feb 1995) (a) The Contractor, at its expense, unless otherwise provided for in this contract, shall furnish, install, operate, and maintain all facilities required to furnish service hereunder, and measure such service at the point of delivery specified in the Service Specifications. Titleto all such facilities shall remain with the Contractor and the Contractor shall be responsible for loss or damage to such facilities, except that the Government shall be responsible to the extent that loss or damage has been caused by the Government’s negligent acts or omissions. (b) Notwithstanding any terms expressed in this clause, the Contractor shall obtain approval from the Contracting Officer prior to any equipment installation, construction, or removal. The Government hereby grants to the Contractor, free of any rental or similar charge, but subject to the limitations specified in this contract, a revocable permit or license to enter the service location for any proper purpose under this contract. This permit or license includes use of the site or sites agreed upon by the parties hereto for the installation, operation, maintenance, and repair of the facilities of the Contractor required to be located upon Government premises. All applicable taxes and other charges in connection therewith, together with all liability of the Contractor in construction, operation, maintenance and repair of such facilities, shall be the obligation of the Contractor. (c) Authorized representatives of the Contractor will be allowed access to the facilities on Government premises at reasonable times to perform the obligations of the Contractor regarding such facilities. It is expressly understood that the Government may limit or restrict the right of access herein granted in any manner considered necessary ( e.g., national security, public safety). (d) Unless otherwise specified in this contract, the Contractor shall, at its expense, remove such facilities and restore Government premises to their original condition as near as practicable within a reasonable time after the Government terminates this contract. In the event such termination of this contract is due to the fault of the Contractor, such facilities may be retained in place at the option of the Government for a reasonable time while the Government attempts to obtain service elsewhere comparable to that provided for hereunder. (End of clause)