Federal Acquisition Regulation
Contract clause
FAR 42.709-7
Use the clause at 52.242-3 , Penalties for Unallowable Costs, in all solicitations and contracts over $1 million except fixed-price contracts without cost incentives or any firm-fixed-price contract for the purchase of commercial products or commercial services. Generally, covered contracts are those which contain one of the clauses at 52.216-7 , 52.216-16 , or 52.216-17 , or a similar clause from an executive agency’s supplement to the FAR.
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