Government contract clause: Copy, customize, and use instantly
Introduction
A government contract clause outlines the specific terms and conditions that apply when the agreement involves a government entity as one of the parties. This clause typically covers compliance with government laws, regulations, and reporting requirements, as well as the responsibilities of the parties to meet the specific obligations related to public contracts.
Below are templates for government contract clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard government contract clause
This version includes basic terms for government contracts.
The [Company] agrees to comply with all applicable laws, regulations, and policies required for performance under this Agreement, as set forth by [Government Agency]. The [Company] shall submit to any audits or inspections deemed necessary by the [Government Agency] to ensure compliance.
Government contract clause with audit and inspection rights
This version includes audit and inspection rights.
The [Government Agency] reserves the right to audit and inspect all records related to the performance of this Agreement. The [Company] agrees to grant the [Government Agency] access to all relevant documents and facilities for the purpose of ensuring compliance with the terms of this Agreement.
Government contract clause with payment terms and invoicing
This version includes payment terms and invoicing.
The [Company] shall submit invoices for payments due under this Agreement in accordance with the schedule outlined in [Schedule X]. All invoices must be approved by the [Government Agency] before payment will be processed, and must include any required documentation to support the charges.
Government contract clause with compliance with public procurement laws
This version includes compliance with public procurement laws.
The [Company] agrees to comply with all public procurement laws, including those related to competitive bidding, ethical conduct, and transparency, as required by the [Government Agency] during the term of this Agreement. Any deviations from these laws may result in termination of this Agreement.
Government contract clause with conflict of interest disclosure
This version includes a conflict of interest disclosure.
The [Company] shall immediately disclose any potential conflicts of interest that arise during the performance of this Agreement. The [Government Agency] reserves the right to require the [Company] to take corrective action if such a conflict is identified.
Government contract clause with performance bonds
This version includes performance bonds.
The [Company] agrees to provide a performance bond in the amount of [$X] as security for the satisfactory completion of the project outlined in this Agreement. The bond will be held by the [Government Agency] and may be drawn upon if the [Company] fails to meet its obligations under this Agreement.
Government contract clause with subcontracting restrictions
This version includes subcontracting restrictions.
The [Company] agrees not to subcontract any part of the work under this Agreement without the prior written consent of the [Government Agency]. Any approved subcontractor must comply with the same terms and conditions as the [Company].
Government contract clause with insurance requirements
This version includes insurance requirements.
The [Company] shall maintain adequate insurance coverage during the term of this Agreement, including but not limited to general liability, workers’ compensation, and professional indemnity insurance. Proof of insurance must be provided to the [Government Agency] upon request.
Government contract clause with security and confidentiality obligations
This version includes security and confidentiality obligations.
The [Company] agrees to adhere to all security protocols and confidentiality requirements established by the [Government Agency] to protect sensitive government information during the course of the Agreement. Unauthorized disclosure of such information may result in termination of the Agreement and legal action.
Government contract clause with termination for convenience
This version includes termination for convenience.
The [Government Agency] may terminate this Agreement, in whole or in part, at any time for its convenience by providing written notice to the [Company]. In the event of such termination, the [Company] shall be entitled to payment for work completed to the date of termination.
Government contract clause with dispute resolution
This version includes dispute resolution procedures.
Any disputes arising under this Agreement shall first be attempted to be resolved through informal negotiation between the parties. If the dispute cannot be resolved through negotiation, the parties agree to submit the dispute to mediation or arbitration as per the procedures outlined in [Schedule X].
Government contract clause with anti-bribery and corruption provisions
This version includes anti-bribery and corruption provisions.
The [Company] agrees to comply with all anti-bribery and anti-corruption laws applicable to government contracts. The [Company] shall not offer or accept bribes, kickbacks, or any form of illegal payment in connection with this Agreement. Violations may result in termination and legal action.
Government contract clause with compliance with labor laws
This version includes compliance with labor laws.
The [Company] agrees to comply with all applicable labor laws and regulations, including but not limited to minimum wage requirements, health and safety standards, and employee benefits. The [Company] will ensure that all employees working on this project are treated in accordance with these laws.
Government contract clause with export control compliance
This version includes export control compliance.
The [Company] shall comply with all applicable export control laws and regulations during the performance of this Agreement. The [Company] agrees not to export any goods, services, or information in violation of these laws.
Government contract clause with record retention requirements
This version includes record retention requirements.
The [Company] agrees to retain all records related to this Agreement, including financial documents, contracts, and correspondence, for a period of [X] years after the completion of the project. These records must be made available to the [Government Agency] for audit or inspection upon request.
Government contract clause with compliance with environmental standards
This version includes compliance with environmental standards.
The [Company] agrees to perform the work under this Agreement in compliance with all applicable environmental laws and regulations. The [Company] shall ensure that the project does not result in environmental harm and that all necessary environmental permits are obtained.
Government contract clause with change order process
This version includes a change order process.
Any changes to the scope of work, schedule, or costs outlined in this Agreement must be approved by the [Government Agency] through a formal change order process. The [Company] shall submit a written request for any proposed changes, and no changes shall be implemented without the approval of the [Government Agency].
Government contract clause with audit trail requirements
This version includes audit trail requirements.
The [Company] shall maintain an audit trail for all transactions and communications related to the performance of this Agreement. The audit trail must be readily accessible to the [Government Agency] upon request and will be used for compliance verification.
Government contract clause with equal opportunity employment
This version includes equal opportunity employment.
The [Company] agrees to provide equal employment opportunities to all individuals, regardless of race, color, religion, gender, sexual orientation, national origin, age, disability, or any other protected characteristic. The [Company] will ensure that all hiring and employment practices comply with applicable anti-discrimination laws.
Government contract clause with payment dispute resolution
This version includes payment dispute resolution.
If the [Company] disputes any payment made under this Agreement, the [Company] must notify the [Government Agency] in writing within [X] days of receiving the payment. The parties agree to resolve payment disputes through negotiation, and if unresolved, through mediation or arbitration.
Government contract clause with emergency fund allocation
This version includes emergency fund allocation.
The [Government Agency] agrees to allocate emergency funds for unforeseen circumstances that may arise during the performance of the Agreement. The [Company] will submit a request for such funds, outlining the need and justification for the allocation.
Government contract clause with conditions for contract renewal
This version includes conditions for contract renewal.
The [Company] acknowledges that the Agreement is subject to renewal based on performance, project outcomes, and the availability of funding from the [Government Agency]. Renewal will be at the discretion of the [Government Agency], and terms will be renegotiated based on the project’s success.
Government contract clause with political contributions restrictions
This version includes political contributions restrictions.
The [Company] agrees not to use government funding or resources to make political contributions or engage in political activities. Any violation of this restriction may result in termination of this Agreement and legal consequences.
Government contract clause with cybersecurity compliance
This version includes cybersecurity compliance.
The [Company] agrees to comply with all relevant cybersecurity regulations and standards during the execution of this Agreement. This includes maintaining secure systems, protecting government data, and reporting any breaches or vulnerabilities promptly to the [Government Agency].
Government contract clause with nondisclosure agreement (NDA)
This version includes a nondisclosure agreement (NDA).
The [Company] and its employees or subcontractors agree to sign a nondisclosure agreement with the [Government Agency] to protect confidential information that may be shared during the term of this Agreement. The [Company] will ensure that all personnel comply with these confidentiality obligations.
Government contract clause with compliance with anti-money laundering (AML) laws
This version includes compliance with AML laws.
The [Company] agrees to comply with all applicable anti-money laundering (AML) laws and regulations while performing under this Agreement. The [Company] shall implement appropriate procedures to detect and report suspicious transactions to the relevant authorities.
Government contract clause with penalties for false reporting
This version includes penalties for false reporting.
If the [Company] is found to have provided false or misleading information in any reports submitted under this Agreement, the [Government Agency] may impose penalties, including the forfeiture of funds, and may terminate the Agreement.
Government contract clause with performance evaluation process
This version includes a performance evaluation process.
The [Government Agency] will evaluate the [Company]’s performance under this Agreement at regular intervals. The evaluation will include an assessment of the work completed, the quality of deliverables, and the adherence to timelines. The [Company] agrees to cooperate with this evaluation process.
Government contract clause with subcontractor approval process
This version includes a subcontractor approval process.
The [Company] agrees to submit any subcontractor agreements for approval by the [Government Agency] before work begins. No subcontractor may be hired without the express written consent of the [Government Agency].
Government contract clause with cost overrun approval
This version includes approval for cost overruns.
The [Company] must obtain written approval from the [Government Agency] before any cost overruns can be incurred. Any costs that exceed the agreed budget must be justified, and prior authorization is required for such additional expenditures.
Government contract clause with training and development obligations
This version includes training and development obligations.
The [Company] agrees to provide ongoing training to its personnel to ensure that they are qualified to perform the tasks outlined in this Agreement. The [Company] will submit an annual training report to the [Government Agency] as part of its performance evaluation.
Government contract clause with reporting on milestones
This version includes reporting on milestones.
The [Company] agrees to submit progress reports to the [Government Agency] at the completion of each major milestone. These reports must include a detailed account of the work completed, expenditures, and any issues encountered during the milestone period.
Government contract clause with use of government equipment
This version includes the use of government equipment.
The [Company] will use government-provided equipment exclusively for the purposes of this Agreement. Any damage, loss, or theft of government equipment must be reported to the [Government Agency] immediately, and the [Company] may be required to reimburse the [Government Agency] for any repairs or replacements.
Government contract clause with obligation to meet quality standards
This version includes obligations to meet quality standards.
The [Company] agrees to meet all quality standards and specifications set forth in [Schedule X] during the performance of the Agreement. Any deviation from these standards must be approved by the [Government Agency] in writing.
Government contract clause with funding disbursement based on performance reviews
This version includes funding disbursement tied to performance.
The disbursement of government funds will be based on the [Company]’s performance as reviewed in quarterly evaluations. If the [Company] meets or exceeds performance targets, the government will release the next tranche of funding.
Government contract clause with compliance with privacy laws
This version includes compliance with privacy laws.
The [Company] agrees to comply with all applicable privacy laws and regulations, including the protection of personal data. The [Company] will ensure that all data handled under this Agreement is kept secure and used only for authorized purposes.
Government contract clause with confidentiality of government data
This version includes confidentiality of government data.
The [Company] agrees to treat all government-provided data as confidential and will not disclose it to third parties without the prior written consent of the [Government Agency]. The [Company] will implement security measures to protect this data from unauthorized access.
Government contract clause with foreign government compliance
This version includes foreign government compliance.
If the project involves cross-border work, the [Company] agrees to comply with the laws and regulations of any foreign government involved, including trade restrictions, import/export controls, and other relevant compliance requirements.
Government contract clause with review of contract terms
This version includes periodic review of contract terms.
The [Company] and the [Government Agency] will jointly review the terms of this Agreement every [X] months to ensure that they remain applicable and that the project is progressing as expected. Any amendments to the Agreement will be made in writing and mutually agreed upon.
Government contract clause with indemnity for government liabilities
This version includes indemnity for government liabilities.
The [Company] agrees to indemnify and hold the [Government Agency] harmless against any liabilities, claims, or damages arising from the [Company]’s performance under this Agreement, including any negligence, misconduct, or failure to comply with applicable laws.
Government contract clause with prohibition of assignment
This version includes a prohibition of assignment.
The [Company] may not assign or transfer any of its rights or obligations under this Agreement to a third party without the prior written consent of the [Government Agency]. Any unauthorized assignment will result in termination of this Agreement.
Government contract clause with dispute resolution by government agency
This version includes dispute resolution by the government agency.
Any disputes that arise under this Agreement will be resolved by the [Government Agency] in accordance with the procedures outlined in [Schedule X]. The [Government Agency] will serve as the final arbiter of any disagreements.
Government contract clause with project milestone reporting
This version includes milestone reporting.
The [Company] agrees to report on the completion of each project milestone, as outlined in [Schedule X]. Each milestone report must include a detailed description of the work completed, any challenges encountered, and the expected timeline for subsequent milestones.
Government contract clause with amendment of contract terms
This version includes contract amendments.
The [Company] and the [Government Agency] may amend the terms of this Agreement by mutual written consent. Any amendment shall be made in writing and shall specify the changes to the Agreement’s terms, scope, or deliverables.
Government contract clause with government oversight of subcontractors
This version includes government oversight of subcontractors.
The [Government Agency] reserves the right to review and approve any subcontractors hired by the [Company] for the performance of this Agreement. The [Company] shall ensure that all subcontractors comply with the terms of this Agreement.
Government contract clause with financial reporting requirements
This version includes financial reporting requirements.
The [Company] agrees to submit detailed financial reports to the [Government Agency] on a [quarterly/annual] basis. These reports will include a breakdown of all expenditures made under the Agreement and an explanation of any discrepancies or cost overruns.
Government contract clause with termination rights for government agency
This version includes termination rights for the government agency.
The [Government Agency] may terminate this Agreement at any time with written notice to the [Company] if the [Company] fails to meet any of its obligations under this Agreement or if the [Government Agency] determines that it is in the public interest to terminate the Agreement.
Government contract clause with limitation of liability
This version includes a limitation of liability.
The [Company]’s liability for any breach of this Agreement shall be limited to the total amount of government funds disbursed under this Agreement. The [Company] shall not be liable for any indirect, consequential, or punitive damages arising from its performance under this Agreement.
Government contract clause with payment for approved expenses
This version includes payment for approved expenses.
The [Government Agency] agrees to reimburse the [Company] for reasonable and necessary expenses incurred during the execution of this Agreement, provided that such expenses have been pre-approved by the [Government Agency] and are in line with the project budget.
Government contract clause with intellectual property rights for government
This version includes intellectual property rights for the government.
Any intellectual property developed under this Agreement, including patents, copyrights, and trademarks, shall be owned by the [Company]. However, the [Government Agency] shall have a non-exclusive, royalty-free license to use any intellectual property developed for governmental purposes.
Government contract clause with confidentiality of government data
This version includes confidentiality of government data.
The [Company] agrees to keep any data or information provided by the [Government Agency] confidential and shall not disclose such data to third parties without the prior written consent of the [Government Agency], unless required by law.
Government contract clause with dispute resolution procedure
This version includes a dispute resolution procedure.
In the event of a dispute between the parties under this Agreement, both parties agree to first attempt to resolve the dispute through informal negotiations. If the dispute cannot be resolved informally, the parties agree to submit to mediation or arbitration as per the procedures outlined in [Schedule X].
Government contract clause with funding conditions for grant projects
This version includes funding conditions for grants.
The [Company] agrees to use the government funds provided under this Agreement solely for the project as outlined in the grant application. Any unspent funds must be returned to the [Government Agency] at the end of the project term.
Government contract clause with compliance with labor standards
This version includes compliance with labor standards.
The [Company] agrees to comply with all applicable labor laws and regulations, including those related to wages, working hours, health and safety standards, and employee benefits. The [Company] shall ensure that all personnel working under this Agreement are treated fairly and in accordance with these laws.
Government contract clause with subcontractor payment terms
This version includes subcontractor payment terms.
The [Company] agrees to ensure that all subcontractors receive timely payment for services rendered under this Agreement. The [Company] will comply with any payment terms and conditions required by the [Government Agency] to ensure that subcontractors are paid promptly and fairly.
Government contract clause with limitation on project changes
This version includes a limitation on project changes.
Any changes to the scope of work, deliverables, or timelines must be approved by the [Government Agency] in writing before they can be implemented. The [Company] agrees not to make any changes without first obtaining written approval.
Government contract clause with termination for cause
This version includes termination for cause.
The [Government Agency] may terminate this Agreement for cause if the [Company] fails to perform any of its material obligations under this Agreement. Such termination will be effective upon written notice and will require the [Company] to return any unspent funds.
Government contract clause with insurance requirements for contractors
This version includes insurance requirements for contractors.
The [Company] agrees to maintain general liability insurance and workers' compensation insurance for all personnel working on the project. The [Company] shall provide the [Government Agency] with proof of insurance upon request.
Government contract clause with annual performance reviews
This version includes annual performance reviews.
The [Company] agrees to undergo an annual performance review by the [Government Agency] to assess the progress and outcomes of the project. The review will include an evaluation of the [Company]’s performance against the objectives outlined in [Schedule X].
Government contract clause with environmental impact assessment
This version includes an environmental impact assessment.
The [Company] agrees to conduct an environmental impact assessment as part of the project and will ensure that the project complies with all environmental regulations. Any necessary mitigation measures will be implemented to address potential environmental risks.
Government contract clause with provision for alternative dispute resolution
This version includes alternative dispute resolution.
If a dispute arises that cannot be resolved through informal negotiations, both parties agree to seek resolution through alternative dispute resolution methods, such as mediation or arbitration, as outlined in [Schedule X].
Government contract clause with pre-approval for all project expenditures
This version includes pre-approval for expenditures.
The [Company] agrees that all expenditures exceeding [$X] must be pre-approved by the [Government Agency] before being incurred. Any unapproved expenditures will not be reimbursed.
Government contract clause with obligation to notify government of any issues
This version includes an obligation to notify the government.
The [Company] agrees to notify the [Government Agency] promptly of any issues that may affect the timely completion or success of the project. This includes any potential delays, cost overruns, or technical difficulties that arise during the execution of the project.
Government contract clause with rights of inspection and audit
This version includes rights of inspection and audit.
The [Government Agency] reserves the right to inspect and audit the [Company]’s facilities, records, and performance of the project at any time during the term of this Agreement. The [Company] agrees to cooperate fully with any such inspections and audits.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.