DFARS 252.236-7004 Payment for Mobilization and Demobilization

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Prescribed in 236.570(b)(2)
Effective Date:	1 December 1991
Clause or Provision:	Clause
Provision or Clause Number:	S 252.236-7004 Payment for Mobilization and Demobilization
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Fixed Price, Construction
Optional:
Subject:
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (b) Use the following provisions and clauses in fixed-price construction contracts and solicitations as applicable— (2) When the head of the contracting activity has approved use of a separate bid item for mobilization and preparatory work, use either— (i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this clause for major construction contracts that require— (A) Major or special items of plant and equipment; or (B) Large stockpiles of material which are in excess of the type, kind, and quantity which would be normal for a contractor qualified to undertake the work; or (ii) 252.236-7004, Payment for Mobilization and Demobilization. Use this clause for contracts involving major mobilization expense, or plant equipment and material (other than the situations covered in paragraph (b)(2)(i) of this section) made necessary by the location or nature of the work. (A) Generally, allocate 60 percent of the lump sum price in paragraph (a) of the clause to the cost of mobilization. (B) Vary this percentage to reflect the circumstances of the particular contract, but in no event should mobilization exceed 80 percent of the payment item.
Clause Overview:	Clause PAYMENT FOR MOBILIZATION AND DEMOBILIZATION (DEC 1991) (a) The Government will pay all costs for the mobilization and demobilization of all of the Contractor's plant and equipment at the contract lump sum price for this item. (1) ______ percent of the lump sum price upon completion of the contractor's mobilization at the work site. (2) The remaining ______ percent upon completion of demobilization. (b) The Contracting Officer may require the Contractor to furnish cost data to justify this portion of the bid if the Contracting Officer believes that the percentages in paragraphs (a)(1) and (2) of this clause do not bear a reasonable relation to the cost of the work in this contract. (1) Failure to justify such price to the satisfaction of the Contracting Officer will result in payment, as determined by the Contracting Officer, of— (i) Actual mobilization costs at completion of mobilization; (ii) Actual demobilization costs at completion of demobilization; and (iii) The remainder of this item in the final payment under this contract. (2) The Contracting Officer's determination of the actual costs in paragraph (b)(1)of this clause is not subject to appeal.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:
Editor:	Marshall

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Personal notes.