Allows government to terminate your contract if you breach or fail to perform.
Applicability: Included in all government contracts.
Key Requirements
Maintain compliance with all contract terms and schedules
Provide timely notice if you foresee performance issues
Cure default within period specified in CO notice
Understand liability for excess reprocurement costs if terminated for default
Common Issues & Pitfalls
Missing delivery dates or quality standards without notice to CO
Not understanding cure period obligations
Failing to recover if terminated for default (Government recovers damages)
Not maintaining records of performance to defend against default charges
Contractor Guidance for Your Bid
Default termination is the most serious contract action. If terminated for default, government can recover costs to reprocure services from another vendor—which are often 20-40% above your contract price. To avoid default: maintain schedule discipline, communicate problems early, request extensions before you miss deadlines, and keep detailed performance records.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.249-2: Termination for Default?
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Allows government to terminate your contract if you breach or fail to perform. Included in all government contracts.
When does FAR 52.249-2 apply to a federal contract?
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Included in all government contracts.
What are the most common compliance issues with FAR 52.249-2?
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Missing delivery dates or quality standards without notice to CO Not understanding cure period obligations Failing to recover if terminated for default (Government recovers damages) Not maintaining records of performance to defend against default charges
How should contractors approach FAR 52.249-2 in their proposals?
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Default termination is the most serious contract action. If terminated for default, government can recover costs to reprocure services from another vendor—which are often 20-40% above your contract price. To avoid default: maintain schedule discipline, communicate problems early, request extensions before you miss deadlines, and keep detailed performance records.
What related FAR clauses should contractors review alongside FAR 52.249-2?
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Contractors reviewing FAR 52.249-2 should also study related clauses: 52-249-1, 52-249-8. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.249-2?
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Non-compliance with FAR 52.249-2 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.