FAR and DFARS › FAR Part 46: Quality Assurance › Subpart 46.8
FAR 46.805 Contract clauses.
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 section tells contracting officers which limitation-of-liability clauses to put in solicitations and contracts, depending on whether the contract is above the simplified acquisition threshold and what it covers (end items, high-value items, services, or a mix). It matters to contractors because these clauses cap the government's liability and shape the risk allocation in the contract. Below the simplified acquisition threshold, the clauses are not required, but the contracting officer may add certain ones if the contractor asks.
Applies to: Contracting officers preparing solicitations and contracts subject to this subpart
Key terms: simplified acquisition threshold · high-value items · end items · limitation of liability · contract schedule
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Contracts that exceed the simplified acquisition threshold. The contracting officer shall insert the appropriate clause or combination of clauses specified in subparagraphs (a)(1) through (a)(5) of this section in solicitations and contracts when the contract amount is expected to be in excess of the simplified acquisition threshold and the contract is subject to the requirements of this subpart as indicated in 46.801:
(1) In contracts requiring delivery of end items that are not high-value items, insert the clause at 52.246-23, Limitation of Liability.
(2) In contracts requiring delivery of high-value items, insert the clause at 52.246-24, Limitation of Liability—High-Value Items.
(3) In contracts requiring delivery of both high-value items and other end items, insert both clauses prescribed in (1) and (2) above, Alternate I of the clause at 52.246-24, and identify clearly in the contract schedule the line items designated as high-value items.
(4) In contracts requiring the performance of services, insert the clause at 52.246-25, Limitation of Liability—Services.
(5) In contracts requiring both the performance of services and the delivery of end items, insert the clause prescribed in subparagraph (4) above and the appropriate clause or clauses prescribed in subparagraph (1), (2), or (3) above, and identify clearly in the contract schedule any high-value line items.
(b) Acquisitions at or below the simplified acquisition threshold. The clauses prescribed by paragraph (a) of this section are not required for contracts at or below the simplified acquisition threshold. However, in response to a contractor's specific request, the contracting officer may insert the clauses prescribed in paragraph (a)(1) or (a)(4) of this section in a contract at or below the simplified acquisition threshold and may obtain any price reduction that is appropriate.
Sections it refers to
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.