Changes & Termination (Parts 43 / 49)

FAR 52.249-8

Default (Fixed-Price Supply and Service)

Allows the Government to terminate the contract for default (T4D) if the contractor: fails to deliver, fails to make progress that endangers performance, or fails to perform any other contractual provision. Contractor is liable for excess reprocurement costs and not paid for partially completed work. Cure notice and show-cause notice procedures are required.

FAR / DFARS Part
FAR Part 49 — Termination of Contracts
Prescribed By
FAR 49.504(a)(1) — Required in fixed-price supply and service contracts > simplified acquisition threshold.
Flow-down to Subcontracts

Not flowed down.

What this clause requires

  • 1Government may terminate for default upon failure to perform after appropriate notice.
  • 2Cure notice required for failures other than late delivery (10-day cure period typical).
  • 3Show-cause notice typically used to give the contractor an opportunity to explain.
  • 4Excess reprocurement costs are charged to the defaulted contractor.
  • 5Excusable delays (acts of God, war, fire, strikes, etc.) excuse non-performance — but must be promptly noticed.

When this clause applies

Fixed-price supply and service non-commercial contracts > simplified acquisition threshold. Construction uses 52.249-10; commercial uses 52.212-4(m).

Common pitfalls

!Ignoring a cure notice — silence is usually treated as acceptance of the default.
!Failure to invoke excusable-delay protections promptly with documentation — late assertion is heavily disfavored.
!Underestimating excess-reprocurement liability — agencies often reprocure at premium and bill the difference.
!Treating partial completion as protection — the Government can default the entire contract for any material breach.

Proposal-team checklist

  • ☐Build an early-warning system on schedule and quality risks — invoke excusable delay or REA before the cure-notice stage.
  • ☐Document supply-chain disruptions, force majeure, and Government-caused delays contemporaneously.
  • ☐Train PMs to respond to cure notices within the cure period with a documented remediation plan.
  • ☐Establish surety-bond / parent-guarantee mitigations on high-risk programs to absorb potential reprocurement liability.

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FAQ

Can T4D be converted to T4C?

Yes — if the contractor disputes the default and prevails at the Board of Contract Appeals or Court of Federal Claims, the T4D is converted to T4C, which generally entitles the contractor to a T4C settlement instead of excess reprocurement liability.

Are excusable delays recognized?

Yes — paragraph (c) lists categories (acts of God, war, fire, floods, epidemics, quarantine restrictions, strikes, freight embargoes, unusually severe weather, and defaults of subs at any tier). But the contractor must give prompt written notice and the cause must be beyond contractor and sub control.

Related clauses

FAR 52.249-2
Termination for Convenience (Fixed-Price)
FAR 52.212-4
Contract Terms — Commercial
FAR 52.243-1
Changes — Fixed-Price

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Reference content based on the Federal Acquisition Regulation and DFARS as of June 2026. Always verify the current clause text at acquisition.gov before relying on it for an actual submission. Educational reference; not legal advice.