FAR Section 52.242-13

FAC 2005–07 FEBRUARY 2, 2006
52.242-4

FEDERAL ACQUISITION REGULATION

(2) The final statement of costs incurred and estimated
to be incurred under the Incentive Price Revision clause (if
applicable), which is used to establish the final contract price.
(b) Contractors which include unallowable indirect costs in
a proposal may be subject to penalties. The penalties are prescribed in 10 U.S.C. 2324 or 41 U.S.C. 256, as applicable,
which is implemented in Section 42.709 of the Federal Acquisition Regulation (FAR).
(c) The Contractor shall not include in any proposal any
cost that is unallowable, as defined in Subpart 2.1 of the FAR,
or an executive agency supplement to the FAR.
(d) If the Contracting Officer determines that a cost submitted by the Contractor in its proposal is expressly unallowable under a cost principle in the FAR, or an executive agency
supplement to the FAR, that defines the allowability of specific selected costs, the Contractor shall be assessed a penalty
equal to—
(1) The amount of the disallowed cost allocated to this
contract; plus
(2) Simple interest, to be computed—
(i) On the amount the Contractor was paid (whether
as a progress or billing payment) in excess of the amount to
which the Contractor was entitled; and
(ii) Using the applicable rate effective for each sixmonth interval prescribed by the Secretary of the Treasury
pursuant to Pub. L. 92-41 (85 Stat. 97).
(e) If the Contracting Officer determines that a cost submitted by the Contractor in its proposal includes a cost previously determined to be unallowable for that Contractor, then
the Contractor will be assessed a penalty in an amount equal
to two times the amount of the disallowed cost allocated to this
contract.
(f) Determinations under paragraphs (d) and (e) of this
clause are final decisions within the meaning of the Contract
Disputes Act of 1978 (41 U.S.C. 601, et seq.).
(g) Pursuant to the criteria in FAR 42.709-5, the Contracting Officer may waive the penalties in paragraph (d) or (e) of
this clause.
(h) Payment by the Contractor of any penalty assessed
under this clause does not constitute repayment to the Government of any unallowable cost which has been paid by the
Government to the Contractor.

(3) Have the certificate signed by an individual of the
Contractor’s organization at a level no lower than a vice president or chief financial officer of the business segment of the
Contractor that submits the proposal.
(b) Failure by the Contractor to submit a signed certificate,
as described in this clause, may result in final indirect costs at
rates unilaterally established by the Contracting Officer.
(c) The certificate of final indirect costs shall read as
follows:
CERTIFICATE OF FINAL INDIRECT COSTS
This is to certify that I have reviewed this proposal to
establish final indirect cost rates and to the best of my knowledge and belief:
1. All costs included in this proposal (identify proposal and
date) to establish final indirect cost rates for (identify period
covered by rate) are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) and its supplements applicable to the contracts to which the final indirect
cost rates will apply; and
2. This proposal does not include any costs which are
expressly unallowable under applicable cost principles of the
FAR or its supplements.
Firm: _________________________________________
Signature: _____________________________________
Name of Certifying Official: ______________________
Title: _________________________________________
Date of Execution: ______________________________

(End of clause)
52.242-5 [Reserved]
52.242-6 [Reserved]
52.242-7 [Reserved]
52.242-8 [Reserved]
52.242-9 [Reserved]
52.242-10 [Reserved]

(End of clause)

52.242-11 [Reserved]

52.242-4 Certification of Final Indirect Costs.
As prescribed in 42.703-2(f), insert the following clause:

52.242-12 [Reserved]

CERTIFICATION OF FINAL INDIRECT COSTS (JAN 1997)
(a) The Contractor shall—
(1) Certify any proposal to establish or modify final
indirect cost rates;
(2) Use the format in paragraph (c) of this clause to certify; and
52.2-256

52.242-13 Bankruptcy.
As prescribed in 42.903, insert the following clause:
BANKRUPTCY (JULY 1995)
In the event the contractor enters into proceedings relating
to bankruptcy, whether voluntary or involuntary, the contractor agrees to furnish, by certified mail or electronic commerce

SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
method authorized by the contract, written notification of the
bankruptcy to the contracting officer responsible for administering the contract. This notification shall be furnished within
five days of the initiation of the proceedings relating to bankruptcy filing. This notification shall include the date on which
the bankruptcy petition was filed, the identity of the court in
which the bankruptcy petition was filed, and a listing of government contract numbers and contracting offices for all government contracts against which final payment has not been
made. This obligation remains in effect until final payment
under this contract.
(End of clause)
52.242-14 Suspension of Work.
As prescribed in 42.1305(a), insert the following clause in
solicitations and contracts when a fixed-price construction or
architect-engineer contract is contemplated:
SUSPENSION OF WORK (APR 1984)
(a) The Contracting Officer may order the Contractor, in
writing, to suspend, delay, or interrupt all or any part of the
work of this contract for the period of time that the Contracting Officer determines appropriate for the convenience of the
Government.
(b) If the performance of all or any part of the work is, for
an unreasonable period of time, suspended, delayed, or interrupted (1) by an act of the Contracting Officer in the administration of this contract, or (2) by the Contracting Officer’s
failure to act within the time specified in this contract (or
within a reasonable time if not specified), an adjustment shall
be made for any increase in the cost of performance of this
contract (excluding profit) necessarily caused by the unreasonable suspension, delay, or interruption, and the contract
modified in writing accordingly. However, no adjustment
shall be made under this clause for any suspension, delay, or
interruption to the extent that performance would have been
so suspended, delayed, or interrupted by any other cause,
including the fault or negligence of the Contractor, or for
which an equitable adjustment is provided for or excluded
under any other term or condition of this contract.
(c) A claim under this clause shall not be allowed—
(1) For any costs incurred more than 20 days before the
Contractor shall have notified the Contracting Officer in writing of the act or failure to act involved (but this requirement
shall not apply as to a claim resulting from a suspension
order); and
(2) Unless the claim, in an amount stated, is asserted in
writing as soon as practicable after the termination of the suspension, delay, or interruption, but not later than the date of
final payment under the contract.
(End of clause)

52.242-15
52.242-15 Stop-Work Order.
As prescribed in 42.1305(b), insert the following clause.
The “90-day” period stated in the clause may be reduced to
less than 90 days.
STOP-WORK ORDER (AUG 1989)
(a) The Contracting Officer may, at any time, by written
order to the Contractor, require the Contractor to stop all, or
any part, of the work called for by this contract for a period of
90 days after the order is delivered to the Contractor, and for
any further period to which the parties may agree. The order
shall be specifically identified as a stop-work order issued
under this clause. Upon receipt of the order, the Contractor
shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the
work covered by the order during the period of work stoppage.
Within a period of 90 days after a stop-work is delivered to the
Contractor, or within any extension of that period to which the
parties shall have agreed, the Contracting Officer shall
either—
(1) Cancel the stop-work order; or
(2) Terminate the work covered by the order as provided
in the Default, or the Termination for Convenience of the Government, clause of this contract.
(b) If a stop-work order issued under this clause is canceled
or the period of the order or any extension thereof expires, the
Contractor shall resume work. The Contracting Officer shall
make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if—
(1) The stop-work order results in an increase in the time
required for, or in the Contractor’s cost properly allocable to,
the performance of any part of this contract; and
(2) The Contractor asserts its right to the adjustment
within 30 days after the end of the period of work stoppage;
provided, that, if the Contracting Officer decides the facts justify the action, the Contracting Officer may receive and act
upon the claim submitted at any time before final payment
under this contract.
(c) If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the Government, the Contracting Officer shall allow reasonable costs
resulting from the stop-work order in arriving at the termination settlement.
(d) If a stop-work order is not canceled and the work covered by the order is terminated for default, the Contracting
Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.
(End of clause)
Alternate I (Apr 1984). If this clause is inserted in a costreimbursement contract, substitute in paragraph (a)(2) the
words “the Termination clause of this contract” for the words
52.2-257