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Good morning,

I am doing a research project on 52.232-20, Limitation of Cost, 52.232-22, Limitation of Funds and 252.232-7007, Limitation of Government’s Obligation. I am trying to generate a good overarching definition explaining the purpose of these clauses. Not how to apply them, that is clear when reading the regulations, but why they were created in the first place. I am thinking more in line with the “Purpose” portion of the regulations in the FAR and its supplements.

Possible a definition to answer the following.

Buyer: Why were the LOC, LOF, and LOGO clauses created?

Example answer: To provide the Government the flexibility to provide only those funds required for work in a given fiscal year while ensuring the Government’s legal liability to meet its contractual funding obligations aligns with Congressional Appropriations, statues and regulations (I’m thinking ADA) by ensuring funding limitations are clearly defined and enforceable through the inclusion of clauses in the contract.

My example answer may demonstrate my ignorance of the purpose of the clauses but I think it clarifies the intent of the definition I seek to generate. I may be trying to fit the purpose of these clauses into a neat definition which may not be practical.

Thank you in advance for your thoughts and efforts.

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Guest Vern Edwards

The purpose of the clauses is to ensure that the government does not spend more than it has. By limiting its obligation to reimburse it limits its commitment to spend more than Congress has made available.

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