Reference no: EM131998286

Scenario: You are a contracting officer and you have a requirement for dredging of the Sabine-Neches Waterway that is estimated to cost anywhere between $1 million and $5 million.  The work consists of using a pipeline dredge toremove approximately 1,518,000 cubic yards of maintenance material. No levee work will be required. Completion time for the project is 140 calendar days with a production rate of 12,000 cubic yards to be dredged per day and the contractor will have full control of the pace of the work.  The contract will be set-aside and competed amongst Service-Disabled, Veteran-Owned Small Businesses.  Solictiation and selection procedures from FAR part 14 will be utilized, resulting in a Firm-Fixed Price (FFP) contract.

Question: Which of the following is TRUE regarding the use of a liquidated damages clause listed under FAR 11.503?

a. The contracting officer must include a liquidated damages clause in the solicitation.

b. The contracting officer must include a liquidated damages clause in the solicitation, provided that she has determined that liquidated damages are appropriate.

c. The contracting officer may include a liquidated damages clause in the solicitation, provided that she has determined that liquidated damages are appropriate.

d. The contracting officer is prohibited from using a liquidated damages clause. 

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