FAR 52.249-8 — Default (Fixed-Price Supply and Service)
Authorizes the government to terminate a fixed-price contract for the contractor's failure to perform (delivery, performance, or going-concern failures).
When This Clause Applies
Required in fixed-price supply and service contracts above the simplified acquisition threshold. Commercial items use 'Termination for Cause' in FAR 52.212-4 instead.
What This Means for Contractors
A default termination is a contractor's worst-case outcome — it exposes the contractor to reprocurement costs, debars-from-award liabilities, and severe past performance consequences. The government must usually provide a Show Cause notice and a 10-day cure period for performance failures. Contractors can challenge default terminations through the Disputes clause and convert them to Terminations for Convenience.
Common Pitfalls
- 1Not responding substantively to a Show Cause notice within the cure period
- 2Failing to document excusable delays (force majeure, government-caused delay)
- 3Accepting the default rather than challenging it via the Disputes process
- 4Underestimating the past-performance consequences for future bids
Related Topics
Related Clauses
Termination for Convenience of the Government (Fixed-Price)
Allows the government to terminate all or part of a fixed-price contract for its convenience and pay the contractor reasonable settlement costs.
Disputes
Implements the Contract Disputes Act — contractors must submit claims in writing to the contracting officer, who issues a final decision that can be appealed to the Boards of Contract Appeals or the U.S. Court of Federal Claims.
Continue Your Research
NAICS 518210 — Data Processing, Hosting, and Related Services
Find federal contracts under NAICS 518210. Common agencies, set-asides, contract values.
NAICS 541330 — Engineering Services
Find federal contracts under NAICS 541330. Common agencies, set-asides, contract values.
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