

No state, district, municipality, or territory’s laws will take precedence to Federal law. This agreement is governed by Federal law. The unenforceable clauses include elements that may be common in commercial contracts, but cannot be included in Government contracts, due to statutes and regulations contained in the FAR (Federal Acquisition Regulation).Īny language, provision, or clause requiring the Government to pay any future fees, penalties, interest, legal costs or to indemnify the Contractor or any person or entity for damages, costs, fees, or any other loss or liability that would create an Anti-Deficiency Act violationĮnd User will be the ordering activity and not any employee or person. The change and addition will create clarity regarding several unenforceable clauses commonly found in CSA’s that will take precedence over the CSA terms. The primary alterations include a reordering of the Order of Precedence and the addition of the Unenforceable Clauses. GSA’s final rule addresses common commercial supplier agreement terms that are inconsistent, or create ambiguity, with Federal law. To reduce government cost, time and frustration in negotiations GSA has signed a final rule addressing certain contract provisions that are standard in commercial contracts are deemed “unenforceable” when applied to Federal contracts.Ĭommercial Supplier Agreements (CSA) and often called End User License Agreements (EULA), Terms of Service (TOS), Terms of Use (TOU), or simply, Software agreements. GSA has tried numerous times to create “fail charts” of terms that are at odds with the requirements set by statute as well as in the Federal Acquisition Regulation ( FAR). The terms & conditions of standard Commercial Supplier Agreements (CSA) have been a point of frustrated negotiations in federal procurement for years.
