As prescribed in 16.603-4 (b)(2), insert the following clause in solicitations and contracts when a letter contract is contemplated:
Limitation of Government Liability (Apr 1984)
(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding ____________________ dollars.
(b) The maximum amount for which the Government shall be liable if this contract is terminated is ___________ dollars.
(End of Clause)
