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)

1. (a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding __________ dollars.

2. (b) The maximum amount for which the Government shall be liable if this contract is terminated is ___________ dollars.

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