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)

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