FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.217-7004 Job orders and compensation.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause explains how job orders are issued and compensated under a Master Agreement. It allows the Contracting Officer to order immediate work when a vessel, its cargo, or stores are endangered by delay or when military necessity requires it, and the contractor must comply. If the parties cannot agree on a price, the matter becomes a dispute, but the contractor must continue working.

Applies to: Contractors performing work under a Master Agreement for ship repair or related services.

What it requires

  • Comply with a written order to perform work on a vessel within its capabilities when issued for urgency or military necessity.
  • Negotiate a price for the work as soon as practicable after the order is issued.
  • Upon request, furnish a breakdown of costs incurred and an estimate of expected costs.
  • Maintain and make available for inspection records supporting the cost of performing the work.

Key terms: Job order · Master Agreement · Contracting Officer · Disputes clause · Military necessity

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 217.7104(a), use the following clause:

Job Orders and Compensation (MAY 2006)

(a) The Contracting Officer shall solicit bids or proposals and make award of job orders. The issuance of a job order signed by the Contracting Officer constitutes award. The job order shall incorporate the terms and conditions of the Master Agreement.

(b) Whenever the Contracting Officer determines that a vessel, its cargo or stores, would be endangered by delay, or whenever the Contracting Officer determines that military necessity requires that immediate work on a vessel is necessary, the Contracting Officer may issue a written order to perform that work and the Contractor hereby agrees to comply with that order and to perform work on such vessel within its capabilities.

(1) As soon as practicable after the issuance of the order, the Contracting Officer and the Contractor shall negotiate a price for the work and the Contracting Officer shall issue a job order covering the work.

(2) The Contractor shall, upon request, furnish the Contracting Officer with a breakdown of costs incurred by the Contractor and an estimate of costs expected to be incurred in the performance of the work. The Contractor shall maintain, and make available for inspection by the Contracting Officer or the Contracting Officer's representative, records supporting the cost of performing the work.

(3) Failure of the parties to agree upon the price of the work shall constitute a dispute within the meaning of the Disputes clause of the Master Agreement. In the meantime, the Contractor shall diligently proceed to perform the work ordered.

(c)(1) If the nature of any repairs is such that their extent and probable cost cannot be ascertained readily, the Contracting Officer may issue a job order (on a sealed bid or negotiated basis) to determine the nature and extent of required repairs.

(2) Upon determination by the Contracting Officer of what work is necessary, the Contractor, if requested by the Contracting Officer, shall negotiate prices for performance of that work. The prices agreed upon shall be set forth in a modification of the job order.

(3) Failure of the parties to agree upon the price shall constitute a dispute under the Disputes clause. In the meantime, the Contractor shall diligently proceed to perform the work ordered.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.217-7003 Changes. · 252.217-7005 Inspection and manner of doing work. →

Rule changes for DFARS Part 252

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 252.217-7004 Job orders and compensation · SpendQuery