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FAR and DFARS › FAR Part 42: Contract Administration and Audit Services › Subpart 42.8

FAR 42.802 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 the contracting officer when to include the Notice of Intent to Disallow Costs clause in a contract. It matters to contractors because if the clause is included, the government must notify them before disallowing certain costs.

Applies to: Contracting officers awarding cost-reimbursement, fixed-price incentive, or price-redetermination contracts

What it requires

  • Insert the clause at 52.242-1, Notice of Intent to Disallow Costs, in solicitations and contracts when a cost-reimbursement contract, a fixed-price incentive contract, or a contract providing for price redetermination is contemplated

Key terms: Notice of Intent to Disallow Costs · cost-reimbursement contract · fixed-price incentive contract · price redetermination · solicitations

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

The text

The contracting officer shall insert the clause at 52.242-1, Notice of Intent to Disallow Costs, in solicitations and contracts when a cost-reimbursement contract, a fixed-price incentive contract, or a contract providing for price redetermination is contemplated.

Sections it refers to

  • 52.242-1 Notice of Intent To Disallow Costs.

Sections that refer to it

  • 42.801 Notice of intent to disallow costs.
  • 52.242-1 Notice of Intent To Disallow Costs.

← 42.801 Notice of intent to disallow costs. · 42.803 Disallowing costs after incurrence. →

Rule changes for FAR Part 42

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

FAR 42.802 Contract clause · SpendQuery