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

DFARS 252.249-7000 Special termination costs.

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 defines special termination costs and limits how much the contractor can claim for them if the contract is terminated for the Government's convenience. It also says the contractor cannot include these costs in its estimates of incurred or to-be-incurred costs, and the Government will not pay more than the stated maximum amount.

Applies to: Contractors under contracts that include DFARS 252.249-7000

What it requires

  • Do not include any special termination costs in estimates of costs incurred or to be incurred.
  • Perform the contract so that the claim for special termination costs does not exceed the dollar amount stated in the clause.

Key terms: special termination costs · severance pay · reasonable costs continuing after termination · settlement of expenses · termination for the convenience of the Government

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

The text

As prescribed in 249.501-70, use the following clause:

Special Termination Costs (DEC 1991)

(a) Definition. Special termination costs, as used in this clause, means only costs in the following categories as defined in part 31 of the Federal Acquisition Regulation (FAR)—

(1) Severance pay, as provided in FAR 31.205-6(g);

(2) Reasonable costs continuing after termination, as provided in FAR 31.205-42(b);

(3) Settlement of expenses, as provided in FAR 31.205-42(g);

(4) Costs of return of field service personnel from sites, as provided in FAR 31.205-35 and FAR 31.205-46(c); and

(5) Costs in paragraphs (a) (1), (2), (3), and (4) of this clause to which subcontractors may be entitled in the event of termination.

(b) Notwithstanding the Limitation of Cost/Limitation of Funds clause of this contract, the Contractor shall not include in its estimate of costs incurred or to be incurred, any amount for special termination costs to which the Contractor may be entitled in the event this contract is terminated for the convenience of the Government.

(c) The Contractor agrees to perform this contract in such a manner that the Contractor's claim for special termination costs will not exceed $________. The Government shall have no obligation to pay the Contractor any amount for the special termination costs in excess of this amount.

(d) In the event of termination for the convenience of the Government, this clause shall not be construed as affecting the allowability of special termination costs in any manner other than limiting the maximum amount of the costs payable by the Government.

(e) This clause shall remain in full force and effect until this contract is fully funded.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.247-7028 Application for U.S. Government Shipping Documentation/Instructions. · 252.249-7001 [Reserved] →

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 252.249-7000 Special termination costs · SpendQuery