Is it proper to use this clause for IT sevice contract under commercial acquisitions below SAP threshold?
When you go to the FAR Clause 52-237-3 - it indicates that this FAR Clause is prescribed when using FAR 37.110 - look at C. - this indicates you only use this when vital or when you anticipate difficulty between one contractor transitioning to another. Based on your summary neither applies - thus you can't use it. See references below.
37.110 -- Solicitation Provisions and Contract Clauses.
(a) The contracting officer shall insert the provision at 52.237-1
, Site Visit, in solicitations for services to be performed on Government installations, unless the solicitation is for construction.
(b) The contracting officer shall insert the clause at 52.237-2
, Protection of Government Buildings, Equipment, and Vegetation, in solicitations and contracts for services to be performed on Government installations, unless a construction contract is contemplated.
(c) The contracting officer may insert the clause at 52.237-3
, Continuity of Services, in solicitations and contracts for services, when --
(1) The services under the contract are considered vital to the Government and must be continued without interruption and when, upon contract expiration, a successor, either the Government or another contractor, may continue them; and
(2) The Government anticipates difficulties during the transition from one contractor to another or to the Government. Examples of instances where use of the clause may be appropriate are services in remote locations or services requiring personnel with special security clearances.