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FAR and DFARS › DFARS Part 242: Contract Administration and Audit Services › Subpart 242.70

DFARS 242.7001 Contract clause.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers when to include the Contractor Business Systems clause (252.242-7005) in a solicitation or contract. It applies when the contract will be a covered contract and the solicitation or contract also includes one of six listed business-system clauses. It matters to contractors because it determines whether the government will require compliance with the Contractor Business Systems clause.

Applies to: Solicitations and contracts that are covered contracts and include one of the listed business-system clauses, excluding certain educational institution contracts

Key terms: covered contract · Contractor Business Systems · educational institutions · FFRDCs · UARCs

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Use the clause at 252.242-7005, Contractor Business Systems, in solicitations and contracts (other than in contracts with educational institutions, Federally Funded Research and Development Centers (FFRDCs), or University Affiliated Research Centers (UARCs) operated by educational institutions) when—

(a) The resulting contract will be a covered contract as defined in 242.7000(a); and

(b) The solicitation or contract includes any of the following clauses:

(1) 252.215-7002, Cost Estimating System Requirements.

(2) 252.234-7002, Earned Value Management System.

(3) 252.242-7004, Material Management and Accounting System.

(4) 252.242-7006, Accounting System Administration.

(5) 252.244-7001, Contractor Purchasing System Administration.

(6) 252.245-7003, Contractor Property Management System Administration.

Sections it refers to

Sections that refer to it

← 242.7000 Contractor business system deficiencies. · 242.7100 General. →

Rule changes for DFARS Part 242

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 242.7001 Contract clause · SpendQuery