FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.237-9 Waiver of Limitation on Severance Payments to Foreign Nationals.

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 waives the usual cost allowability limits on severance payments made to foreign nationals under a covered contract. It matters because it can let a contractor charge severance costs that would otherwise be unallowable, but only as authorized by the cited statutes. The clause may also flow down to subcontracts if the Contracting Officer approves.

Applies to: Contracts and, if approved, subcontracts involving severance payments to foreign nationals

What it requires

  • Obtain Contracting Officer approval before incorporating this clause into subcontracts issued under the contract

Key terms: severance payments · foreign nationals · cost allowability limitations · subcontracts · Contracting Officer

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

The text

As prescribed in 37.113-2(b), use the following clause:

Waiver of Limitation on Severance Payments to Foreign Nationals (DEC 2022)

(a) Pursuant to 10 U.S.C. 3744(b) or 41 U.S.C. 4304(b)(1), as applicable, the cost allowability limitations in FAR 31.205-6(g)(6) are waived.

(b) This clause may be incorporated into subcontracts issued under this contract, if approved by the Contracting Officer.

(End of clause)

Sections it refers to

  • 37.113-2 Solicitation provision and contract clause.
  • 31.205-6 Compensation for personal services.

Sections that refer to it

  • 37.113-2 Solicitation provision and contract clause.

← 52.237-8 Restriction on Severance Payments to Foreign Nationals. · 52.237-10 Identification of Uncompensated Overtime. →

Rule changes for FAR Part 52

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

FAR 52.237-9 Waiver of Limitation on Severance Payments to Foreign Nationals · SpendQuery