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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.236-7006 Cost limitation.

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 DFARS provision applies to solicitations where certain items have statutory cost limitations stated in the Schedule. It warns that offers must state separate prices for those items and that prices must include all costs, overhead, and profit. Offers that fail to do so, are materially unbalanced to fit within the limits, or exceed the limits may be rejected as nonresponsive.

Applies to: Offerors responding to solicitations that include items subject to statutory cost limitations

What it requires

  • State separate prices for items identified in the Schedule as subject to a cost limitation
  • Include an appropriate apportionment of all costs, direct and indirect, overhead, and profit in prices for items subject to cost limitations

Key terms: statutory cost limitations · Schedule · nonresponsive · materially unbalanced · waived

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

The text

As prescribed in 236.570(b)(4), use the following provision:

Cost Limitation (JAN 1997)

(a) Certain items in this solicitation are subject to statutory cost limitations. The limitations are stated in the Schedule.

(b) An offer which does not state separate prices for the items identified in the Schedule as subject to a cost limitation may be considered nonresponsive.

(c) Prices stated in offers for items subject to cost limitations shall include an appropriate apportionment of all costs, direct and indirect, overhead, and profit.

(d) Offers may be rejected which—

(1) Are materially unbalanced for the purpose of bringing items within cost limitations; or

(2) Exceed the cost limitations, unless the limitations have been waived by the Government prior to award.

(End of provision)

Sections it refers to

  • 236.570 Additional provisions and clauses.

Sections that refer to it

  • 236.570 Additional provisions and clauses.

← 252.236-7005 Airfield safety precautions. · 252.236-7007 Additive or deductive items. →

Rule changes for DFARS Part 252

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

DFARS 252.236-7006 Cost limitation · SpendQuery