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DFARS 252.236-7004 Payment for Mobilization and Demobilization. Basic (Dec 1991)

As prescribed in 236.570(b)(2), when the head of the contracting activity has approved use of a separate bid item for mobilization and preparatory work, 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.

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.

(End of clause)

NONE

Services ✖ Supplies ✖ Subcontractor ✖ Construction ✔ Architect-Eng ✖ (Applies to 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.);

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