whatbindsCheck your order

Clauses · FAR · Termination

FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price)

Does the regulation require it to flow down?

No

The mirror mechanics: (b)(3) obligates the prime to terminate the related subcontracts, and (g)(2)(ii) makes recoverable 'the cost of settling and paying termination settlement proposals under terminated subcontracts'. Without a mirror clause in the subcontract ('Government' becomes 'Prime'), the prime has no contractual right to terminate you for convenience — terminating would be its own breach of contract. That is why every fixed-price sub template carries the adapted version.

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-04 · edition APR 2012 (Basic; Alt I–III) · base v0.9.3 Read the text ↗

What it makes you produce

3 items for your checklist, slowest first.

  1. Something you write2

    Days to weeks, and nobody outside your company has to agree to it.

    • Complete termination inventory schedules, submitted no later than 120 days from the effective date of the termination

      FAR 52.249-2(c)

    • The final termination settlement proposal, submitted no later than one year from the effective date — costs incurred on the terminated work, a profit allowance on what was done, and the settlement costs themselves

      FAR 52.249-2(e)

  2. Nothing to send now

    It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.

    • The records and documents behind both, kept for 3 years after final settlement

      FAR 52.249-2(n)

When it is used

FAR 49.502(b)(1)(i) directs the contracting officer to insert this clause when a fixed-price contract is contemplated and the amount is expected to exceed the simplified acquisition threshold, with exceptions for dismantling and demolition, research and development with an educational or nonprofit institution on a no-profit basis, and architect-engineer services. That paragraph says nothing about commercial products or commercial services. The commercial carve-out is FAR 49.002(a)(2), which keeps part 49 off commercial product and commercial service contracts awarded using part 12 procedures — a fact about how the contract one level up was awarded, not about what you sell. No flow-down mandate: the clause reaches you because the prime needs to mirror it — when the Government terminates the prime, (b)(3) obligates it to 'terminate all subcontracts to the extent they relate to the work terminated'.

Read closely

Both submissions are worded 'shall submit' and carry a deadline, which is why they sit with the paper you write rather than with the money; what stays on the money side is (n)'s records and (l)'s 90 days for asking to adjust the price of the continuing work after a partial termination. Nothing is produced until a termination notice arrives. The figures are the regulation's, and both documents we have read rewrite them: Lockheed's CorpDoc 3A changes (c) from 120 days to 60, (e) from one year to six months and (l) from 90 days to 45, deletes (j), and lengthens two figures in (d) — 15 days to 30 and 45 days to 60 — while a BlueForge purchase order moves that same 45 days in (d) the other way, to 90, and (e) to six months. The direction is not always shorter, and the deadlines that bind are the ones written into the order.

The 14 templates that name it, with the line
143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 304155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 343233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 951105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 1344Boeing GP7 — General Provisions, Fixed Price Goods Contract under U.S. Government Prime ContractBoeingline 2344Boeing GP8 — General Provisions, Fixed Price Services Contract under U.S. Government Prime ContractBoeingline 228166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 436255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 246243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2130240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 225910BAE Systems Inc. USGOVGOODS — General Clauses for Subcontracts/Purchase Orders for Goods under a U.S. Government Prime ContractBAE Systemsline 808273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 82089AAR Government Services — C40 Purchase Order General Provisions, Non-Commercial Firm Fixed Price Items or ServicesAAR Corpline 3039178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1781

Source: acquisition.gov, FAR 52.249-2, 49.502(b)(1)(i) and 49.002(a)(2) (verified 2026-08-04; both prescription paragraphs re-read verbatim 2026-08-07)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.