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

DFARS 252.239-7011 Special construction and equipment charges.

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 governs how the Government handles special construction and equipment charges under a contract. It says the Government will not directly reimburse the Contractor for construction or equipment costs unless the Contracting Officer authorizes it, and it sets rules for credits, charge limits, and replacement costs. It matters because it limits what a contractor can charge and requires repayment of Government contributions in certain situations.

Applies to: Contractors performing under contracts that include DFARS clause 252.239-7011

What it requires

  • Do not expect direct reimbursement for construction or equipment costs unless the Contracting Officer authorizes it.
  • If you stop using facilities or equipment that the Government reimbursed in whole or part, allow the Government credit for the value attributable to its contribution and promptly pay that amount.
  • Ensure direct special construction charges do not exceed actual costs and the amount properly allocable to services provided to the Government.
  • Do not include in direct special construction charges any costs covered by cancellation or termination liability or by recurring or other nonrecurring charges.

Key terms: direct special construction charge · recurring charges · net salvage value · cancellation or termination liability · rate base

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

The text

As prescribed in 239.7411(b), use the following clause:

Special Construction and Equipment Charges (DEC 1991)

(a) The Government will not directly reimburse the Contractor for the cost of constructing any facilities or providing any equipment, unless the Contracting Officer authorizes direct reimbursement.

(b) If the Contractor stops using facilities or equipment which the Government has, in whole or part, directly reimbursed, the Contractor shall allow the Government credit for the value of the facilities or equipment attributable to the Government's contribution. Determine the value of the facilities and equipment on the basis of their foreseeable reuse by the Contractor at the time their use is discontinued or on the basis of the net salvage value, whichever is greater. The Contractor shall promptly pay the Government the amount of any credit.

(c) The amount of the direct special construction charge shall not exceed—

(1) The actual costs to the Contractor; and

(2) An amount properly allocable to the services to be provided to the Government.

(d) The amount of the direct special construction charge shall not include costs incurred by the Contractor which are covered by—

(1) A cancellation or termination liability; or

(2) The Contractor's recurring or other nonrecurring charges.

(e) The Contractor represents that—

(1) Recurring charges for the services, facilities, and equipment do not include in the rate base any costs that have been reimbursed by the Government to the Contractor; and

(2) Depreciation charges are based only on the cost of facilities and equipment paid by the Contractor and not reimbursed by the Government.

(f) If it becomes necessary for the Contractor to incur costs to replace any facilities or equipment, the Government shall assume those costs or reimburse the Contractor for replacement costs at mutually acceptable rates under the following circumstances—

(1) The Government paid direct special construction charges; or

(2) The Government reimbursed the Contractor for those facilities or equipment as a part of the recurring charges; and

(3) The need for replacement was due to circumstances beyond the control and without the fault of the Contractor.

(g) Before incurring any costs under paragraph (f) of this clause, the Government shall have the right to terminate the service under the Cancellation or Termination of Orders clause of this contract.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.239-7010 Cloud Computing Services. · 252.239-7012 Title to telecommunication facilities and equipment. →

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 252.239-7011 Special construction and equipment charges · SpendQuery