Contract Clauses
Also known as: The clauses; the terms and conditions
Your role here: Where the binding legal terms live
At a Glance
- Part
- Part II — Contract Clauses
- What it contains
- The FAR and agency clauses that govern the contract
- Format
- Mostly incorporated by reference (FAR 52.252-2), not printed in full
- You…
- Read it — these are the binding terms, including the set-aside rules
- Governing authority
- FAR 15.204-3; FAR Part 52
What It Is
Section I is the legal engine of the contract — the complete list of the FAR and agency clauses that will bind you once you are awarded the work. Under FAR 15.204-3 the contracting officer assembles the clauses required for this contract type, dollar value, and socioeconomic program, and lists them here. Most are 'incorporated by reference' under FAR 52.252-2 — meaning the section lists the clause number, title, and date but not the full text, which you have to look up on acquisition.gov. That brevity is deceptive: the clauses in Section I include the ones that define your set-aside obligations (FAR 52.219-27, the SDVOSB set-aside clause, and FAR 52.219-14, Limitations on Subcontracting), the small-business utilization clause (52.219-8), the commercial or standard terms (52.212-4, or the Changes, Termination, and Payment clauses on a non-commercial buy), and the statute-and-executive-order checklist (52.212-5). Every one is enforceable, so Section I is a section to read — and to look up the referenced clauses you do not already know cold.
What’s In It
- The SDVOSB set-aside clause (FAR 52.219-27) and Limitations on Subcontracting (52.219-14).
- Utilization of Small Business Concerns (52.219-8) and other socioeconomic clauses.
- The commercial terms clause (52.212-4) or the standard Changes, Termination, and Payment clauses.
- The statute-and-executive-order checklist clause (52.212-5) on commercial buys.
- Clauses incorporated by reference under FAR 52.252-2 — number and title only.
What Goes Here
| Component | What It Means |
|---|---|
| Incorporated by reference | Most clauses appear as a number, title, and date under FAR 52.252-2 — the full text is not printed. You are still bound by every one, so look up any clause you do not already know. |
| The set-aside clauses | FAR 52.219-27 (SDVOSB set-aside) and 52.219-14 (Limitations on Subcontracting) live here and define your eligibility and self-performance obligations on the contract. |
| The lifecycle clauses | Changes, Termination for Convenience and Default, Prompt Payment, and Disputes clauses in Section I govern what happens when the contract is modified, ended, or disputed. |
| The 52.212-5 checklist | On a commercial buy, FAR 52.212-5 lists the statutes and executive orders that apply. It is a map to your compliance obligations, from labor standards to cybersecurity. |
What It Means for an SDVOSB
Section I is where an SDVOSB's set-aside obligations become legally binding. Two clauses matter most: FAR 52.219-27, the notice of SDVOSB set-aside that ties your eligibility to your VetCert status and the rule of two, and FAR 52.219-14, Limitations on Subcontracting, which requires you and any similarly situated entities to self-perform a set percentage of the work (typically 50% of the cost of services or supplies, with different rules for construction). Read these clauses — do not just note that they are listed — because they govern how you must build your team, what you can subcontract, and how you will be audited. Section I also incorporates the payment, changes, and termination clauses that will control your cash flow and risk after award. When a clause is incorporated by reference and you do not know it cold, look it up in the clauses reference before you bid.
Watch Out For
- Assuming 'incorporated by reference' means optional — you are bound by every listed clause, printed or not.
- Not reading FAR 52.219-14 closely — its self-performance percentages govern how you must build your team.
- Overlooking FAR 52.212-5's statute list on a commercial buy — it maps your labor, cybersecurity, and other obligations.
- Missing conflicts between Section I clauses and something promised in Section H or a proposal — the clauses generally control.
Run the Numbers
Frequently Asked
What is Section I of a solicitation?
Section I, under FAR 15.204-3, is the contract clauses section — the full list of FAR and agency clauses that will govern the awarded contract. It includes the SDVOSB set-aside clause (FAR 52.219-27), Limitations on Subcontracting (52.219-14), the commercial or standard terms, and the statute-and-executive-order checklist (52.212-5). Most clauses are incorporated by reference under FAR 52.252-2 — listed by number and title only, with the full text on acquisition.gov — but you are bound by every one, so Section I is a section to read carefully.
Which Section I clauses matter most for an SDVOSB set-aside?
Two clauses stand out. FAR 52.219-27 is the notice of total SDVOSB set-aside, which ties your eligibility to your VetCert certification and the rule of two. FAR 52.219-14, Limitations on Subcontracting, requires the prime and any similarly situated entities to self-perform a set percentage of the work — generally 50% of the cost of contract performance incurred for personnel on services or supplies, with different thresholds for construction. Both live in Section I and are legally binding, so read them, not just note that they are listed.
Primary Sources
- FAR 15.204-3 — Part II — Contract Clauses
- FAR 52.252-2 — Clauses Incorporated by Reference
- FAR 52.219-27 — Notice of Set-Aside for SDVOSB Concerns
Plain-English reference, not legal advice. The Uniform Contract Format is tailored by agencies, and the FAR sections that define it are amended from time to time — always read the actual solicitation and confirm each section against the official source before relying on it, and consult qualified counsel for your specific situation.
Change log (1)
- LaunchedPublished the federal solicitation sections reference covering the thirteen sections of the Uniform Contract Format under FAR 15.204 — Section A (the SF 33 / SF 1449 cover form), B (prices and CLINs), C (the statement of work / PWS / SOO), D (packaging and marking), E (inspection and acceptance), F (deliveries and period of performance), G (contract administration data and invoicing), H (special contract requirements), I (the FAR clauses, including the SDVOSB set-aside and limitations on subcontracting), J (the list of attachments and wage determinations), K (representations and certifications, where SDVOSB status is certified), L (instructions to offerors), and M (evaluation factors for award) — each with an at-a-glance quick-facts card, a what's-in-it list, a what-goes-here table, an SDVOSB-specific angle, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source FAR citations, and cross-links into the glossary, how-to guides, forms, clauses, solicitation types, source-selection methods, FAQ, and the set-aside eligibility, win-probability, price-to-win, and limitations-on-subcontracting calculators.