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   <concept id="DFARS_252.232-7007"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.232-7007</ph> Limitation of
Government’s Obligation.</title>
      <conbody outputclass="clause" class="- topic/body  concept/conbody ">
         <p class="- topic/p ">As prescribed in
               <xref href="232.706-70.dita#DFARS_232.706-70"
                  base="i1380169"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">           232.706-70
         </xref>
            , use
the following clause:</p>
         <p outputclass="Ctr_SmCaps" class="- topic/p ">LIMITATION OF GOVERNMENT’S OBLIGATION
(APR 2014)</p>
         <p outputclass="List1" class="- topic/p ">(a) Contract line item(s) <i class="+ topic/ph hi-d/i ">[Contracting
Officer insert after negotiations]</i> is/are incrementally funded.
For this/these item(s), the sum of $ <i class="+ topic/ph hi-d/i ">[Contracting Officer insert
after negotiations]</i> of the total price is presently available
for payment and allotted to this contract. An allotment schedule
is set forth in paragraph (j) of this clause.</p>
         <p outputclass="List1" class="- topic/p ">(b) For item(s) identified in paragraph
(a) of this clause, the Contractor agrees to perform up to the point
at which the total amount payable by the Government, including reimbursement
in the event of termination of those item(s) for the Government’s
convenience, approximates the total amount currently allotted to
the contract. The Contractor is not authorized to continue work
on those item(s) beyond that point. The Government will not be obligated
in any event to reimburse the Contractor in excess of the amount
allotted to the contract for those item(s) regardless of anything
to the contrary in the clause entitled “Termination for Convenience
of the Government.” As used in this clause, the total amount payable
by the Government in the event of termination of applicable contract
line item(s) for convenience includes costs, profit, and estimated
termination settlement costs for those item(s).</p>
         <p outputclass="List1" class="- topic/p ">(c) Notwithstanding the dates specified
in the allotment schedule in paragraph (j) of this clause, the Contractor
will notify the Contracting Officer in writing at least ninety days
prior to the date when, in the Contractor’s best judgment, the work will
reach the point at which the total amount payable by the Government,
including any cost for termination for convenience, will approximate
85 percent of the total amount then allotted to the contract for
performance of the applicable item(s). The notification will state
(1) the estimated date when that point will be reached and (2) an
estimate of additional funding, if any, needed to continue performance
of applicable line items up to the next scheduled date for allotment
of funds identified in paragraph (j) of this clause, or to a mutually
agreed upon substitute date. The notification will also advise the
Contracting Officer of the estimated amount of additional funds
that will be required for the timely performance of the item(s)
funded pursuant to this clause, for a subsequent period as may be
specified in the allotment schedule in paragraph (j) of this clause
or otherwise agreed to by the parties. If after such notification
additional funds are not allotted by the date identified in the
Contractor’s notification, or by an agreed substitute date, the
Contracting Officer will terminate any item(s) for which additional
funds have not been allotted, pursuant to the clause of this contract
entitled “Termination for Convenience of the Government.”</p>
         <p outputclass="List1" class="- topic/p ">(d) When additional funds are allotted
for continued performance of the contract line item(s) identified
in paragraph (a) of this clause, the parties will agree as to the
period of contract performance which will be covered by the funds.
The provisions of paragraphs (b) through (d) of this clause will
apply in like manner to the additional allotted funds and agreed
substitute date, and the contract will be modified accordingly.</p>
         <p outputclass="List1" class="- topic/p ">(e) If, solely by reason of failure of
the Government to allot additional funds, by the dates indicated
below, in amounts sufficient for timely performance of the contract
line item(s) identified in paragraph (a) of this clause, the Contractor
incurs additional costs or is delayed in the performance of the
work under this contract and if additional funds are allotted, an equitable
adjustment will be made in the price or prices (including appropriate
target, billing, and ceiling prices where applicable) of the item(s),
or in the time of delivery, or both. Failure to agree to any such
equitable adjustment hereunder will be a dispute concerning a question
of fact within the meaning of the clause entitled “Disputes.”</p>
         <p outputclass="List1" class="- topic/p ">(f) The Government may at any time prior
to termination allot additional funds for the performance of the
contract line item(s) identified in paragraph (a) of this clause.</p>
         <p outputclass="List1" class="- topic/p ">(g) The termination provisions of this
clause do not limit the rights of the Government under the clause
entitled “Default.” The provisions of this clause are limited to
the work and allotment of funds for the contract line item(s) set
forth in paragraph (a) of this clause. This clause no longer applies
once the contract is fully funded except with regard to the rights
or obligations of the parties concerning equitable adjustments negotiated
under paragraphs (d) and (e) of this clause.</p>
         <p outputclass="List1" class="- topic/p ">(h) Nothing in this clause affects the
right of the Government to terminate this contract pursuant to the
clause of this contract entitled “Termination for Convenience of
the Government.”</p>
         <p outputclass="List3" class="- topic/p ">(i) Nothing in this clause shall be construed
as authorization of voluntary services whose acceptance is otherwise
prohibited under 31 U.S.C. 1342.</p>
         <p outputclass="List1" class="- topic/p ">(j) The parties contemplate that the Government
will allot funds to this contract in accordance with the following
schedule:</p>
         <p class="- topic/p "/>
         <table frame="all" colsep="0" rowsep="0" class="- topic/table ">
            <tgroup cols="2"
                    colsep="0"
                    rowsep="0"
                    outputclass="Table"
                    class="- topic/tgroup ">
               <colspec colnum="1"
                        colname="1"
                        colwidth="74*"
                        colsep="0"
                        class="- topic/colspec "
                        rowheader="headers"/>
               <colspec colnum="2"
                        colname="2"
                        colwidth="26*"
                        colsep="0"
                        class="- topic/colspec "
                        rowheader="headers"/>
               <tbody class="- topic/tbody ">
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                        <p class="- topic/p ">On execution
of contract</p>
                     </entry>
                     <entry colname="2" rowsep="1" class="- topic/entry ">
                        <p class="- topic/p ">$ ________</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                        <p class="- topic/p ">(month) (day),
(year)</p>
                     </entry>
                     <entry colname="2" rowsep="1" class="- topic/entry ">
                        <p class="- topic/p ">$ ________</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                        <p class="- topic/p ">(month) (day),
(year)</p>
                     </entry>
                     <entry colname="2" rowsep="1" class="- topic/entry ">
                        <p class="- topic/p ">$ ________</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" colsep="1" class="- topic/entry ">
                        <p class="- topic/p ">(month) (day), (year)</p>
                     </entry>
                     <entry colname="2" class="- topic/entry ">
                        <p class="- topic/p ">$ ________</p>
                     </entry>
                  </row>
               </tbody>
            </tgroup>
         </table>
         <p class="- topic/p "/>
         <p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
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