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FAR and DFARS › DFARS Part 242: Contract Administration and Audit Services › Subpart 242.72

DFARS 242.7204 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 Material Management and Accounting System clause in solicitations and contracts. It applies to contracts above the simplified acquisition threshold that are not for commercial products or services, are not awarded to small businesses, educational institutions, or nonprofit organizations, and are either cost-reimbursement contracts or fixed-price contracts with progress payments based on costs incurred. If your contract meets these conditions, the clause will be included and you must comply with its requirements.

Applies to: Solicitations and contracts exceeding the simplified acquisition threshold that are not for commercial products or commercial services and meet the specified criteria.

Key terms: simplified acquisition threshold · commercial products · commercial services · small businesses · cost-reimbursement contracts

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

The text

Use the clause at 252.242-7004, Material Management and Accounting System, in all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial products or commercial services and—

(a) Are not awarded to small businesses, educational institutions, or nonprofit organizations; and

(b) Are either—

(1) Cost-reimbursement contracts; or

(2) Fixed-price contracts with progress payments made on the basis of costs incurred by the contractor as work progresses under the contract.

Sections it refers to

Sections that refer to it

← 242.7203 Review procedures. · 242.7301 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 242.7204 Contract clause · SpendQuery