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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.241-7 Change in Rates or Terms and Conditions of Service for Regulated Services.

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 clause governs contracts for services that are regulated by a regulatory body. It requires the contractor to notify the government about rate or service changes filed with or approved by that regulatory body, and to keep its rates no higher than the lowest rates offered to other customers of the same class. It matters because it sets notice deadlines and rate limits that affect how the contractor bills and continues service.

Applies to: Contractors furnishing regulated services under this contract

What it requires

  • Give written notice of the filing of an application for change in rates or terms and conditions of service concurrently with the filing
  • Give written notice of any changes pending with the regulatory body as of the date of contract award
  • Forward a copy of approved changes to the Contracting Officer within 15 days after the effective date
  • Immediately provide the Contracting Officer a copy of any regulation concerning matters other than rates that affects this contract

Key terms: regulatory body · rates · terms and conditions of service · published and unpublished rate schedule(s) · contract modification

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

The text

As prescribed in 41.501(d)(1), insert a clause substantially the same as the following:

Change in Rates or Terms and Conditions of Service for Regulated Services (FEB 1995)

(a) This clause applies to the extent services furnished under this contract are subject to regulation by a regulatory body. The Contractor agrees to give *__________ written notice of (1) the filing of an application for change in rates or terms and conditions of service concurrently with the filing of the application and (2) any changes pending with the regulatory body as of the date of contract award. Such notice shall fully describe the proposed change. If, during the term of this contract, the regulatory body having jurisdiction approves any changes, the Contractor shall forward to the Contracting Officer a copy of such changes within 15 days after the effective date thereof. The Contractor agrees to continue furnishing service under this contract in accordance with the amended tariff, and the Government agrees to pay for such service at the higher or lower rates as of the date when such rates are made effective.

(b) The Contractor agrees that throughout the life of this contract the applicable published and unpublished rate schedule(s) shall not be in excess of the lowest cost published and unpublished rate schedule(s) available to any other customers of the same class under similar conditions of use and service.

(c) In the event that the regulatory body promulgates any regulation concerning matters other than rates which affects this contract, the Contractor shall immediately provide a copy to the Contracting Officer. The Government shall not be bound to accept any new regulation inconsistent with Federal laws or regulations.

(d) Any changes to rates or terms and conditions of service shall be made a part of this contract by the issuance of a contract modification unless otherwise specified in the contract. The effective date of the change shall be the effective date by the regulatory body. Any factors not governed by the regulatory body will have an effective date as agreed to by the parties.

(End of clause)

*Note: Insert language prescribed in 41.501(d)(1).

Sections it refers to

  • 41.501 Solicitation provision and contract clauses.

Sections that refer to it

  • 41.402 Rate changes and regulatory intervention.
  • 41.501 Solicitation provision and contract clauses.
  • 241.501 Solicitation provision and contract clauses.

← 52.241-6 Service Provisions. · 52.241-8 Change in Rates or Terms and Conditions of Service for Unregulated Services. →

Rule changes for FAR Part 52

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

FAR 52.241-7 Change in Rates or Terms and Conditions of Service for Regulated Services · SpendQuery