SpendQueryBeta

48 CFR · Federal Acquisition Regulation and Defense supplement

FAR and DFARS navigator

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.

Ask the FAR

Try: · · ·

Clear

52 sections with “Allowable Cost and Payment clause”: the first 40

  • FAR 52.216-7 Allowable Cost and Payment.
    As prescribed in 16.307(a), insert the following clause: Allowable Cost and Payment (AUG 2018) (a) Invoicing. (1) The Government will make payments to the Contractor when requested as work progresses, but (except for small business concer…
  • FAR 52.216-26 Payments of Allowable Costs Before Definitization.
    As prescribed in 16.603-4(c), insert the following clause: Payments of Allowable Costs Before Definitization (DEC 2002) (a) Reimbursement rate. Pending the placing of the definitive contract referred to in this letter contract, the Govern…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    … for in paragraph (b)(2) of this clause, the Government will reimburse the Contractor for allowable cost of materials provided the Contractor— (i) Has made payments for materials in accordance with the terms and conditions of the agreement…
  • FAR 52.242-3 Penalties for Unallowable Costs.
    As prescribed in 42.709-7, use the following clause: Penalties for Unallowable Costs (DEC 2022) (a) Definition. Proposal, as used in this clause, means either— (1) A final indirect cost rate proposal submitted by the Contractor after the…
  • FAR 31.110 Indirect cost rate certification and penalties on unallowable costs.
    …ding the certification provisions and the related contract clause prescription. (b) If unallowable costs are included in final indirect cost settlement proposals, penalties may be assessed. See 42.709 for administrative procedures regardin…
  • FAR 52.216-15 Predetermined Indirect Cost Rates.
    … following clause: Predetermined Indirect Cost Rates (APR 1998) (a) Notwithstanding the Allowable Cost and Payment clause of this contract, the allowable indirect costs under this contract shall be obtained by applying predetermined indir…
  • FAR 52.246-8 Inspection of Research and Development—Cost-Reimbursement.
    … (h) below, the cost of replacement or correction shall be determined as specified in the Allowable Cost and Payment clause, but no additional fee shall be paid. The Contractor shall not tender for acceptance work required to be replaced or…
  • FAR 52.203-12 Limitation on Payments to Influence Certain Federal Transactions.
    … assume that these other monies were spent for any influencing activities that would be unallowable if paid for with Federal appropriated funds. (c) Exceptions. The prohibition in paragraph (b) of this clause does not apply under the follo…
  • FAR 52.232-12 Advance Payments.
    …ontractor may withdraw funds from the special account only to pay for properly allocable, allowable, and reasonable costs for direct materials, direct labor, and indirect costs. Other withdrawals require approval in writing by the administe…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    … (A) The frequency of payments; (B) The total amount of payments compared to the maximum allowable amount specified at FAR 32.1004(b)(2); and (C) The risk of the payment schedule to the contractor. (2) Mandatory. (i) The contracting offi…
  • FAR 52.216-10 Incentive Fee.
    …tracting Officer insert Contractor's participation] cents for every dollar that the total allowable cost is less than the target cost or decreased by ___ [Contracting Officer insert Contractor's participation] cents for every dollar that th…
  • FAR 52.229-10 State of New Mexico Gross Receipts and Compensating Tax.
    … Mexico by the Contractor or its subcontractors will be determined in accordance with the Allowable Cost and Payment clause of this contract except as provided in paragraph (d) of this clause. (c) The Contractor shall submit applications f…
  • FAR 52.230-3 Disclosure and Consistency of Cost Accounting Practices.
    …ency in Allocating Costs Incurred for the Same Purpose; 48 CFR 9904.405, Accounting for Unallowable Costs; and 48 CFR 9904.406, Cost Accounting Standard-Cost Accounting Period, in effect on the date of award of this contract as indicated in…
  • FAR 52.246-3 Inspection of Supplies—Cost-Reimbursement.
    …ovided in paragraph (h) below, the cost of replacement or correction shall be included in allowable cost, determined as provided in the Allowable Cost and Payment clause, but no additional fee shall be paid. The Contractor shall not tender …
  • FAR 16.307 Contract clauses.
    (a)(1) The contracting officer shall insert the clause at 52.216-7, Allowable Cost and Payment, in solicitations and contracts when a cost-reimbursement contract or a time-and-materials contract (other than a contract for a commercial produ…
  • FAR 16.406 Contract clauses.
    …ntracting officer shall use the clause with its Alternate I. (c) The clause at 52.216-7, Allowable Cost and Payment, is prescribed in 16.307(a) for insertion in solicitations and contracts when a cost-plus-incentive-fee contract or a cost-…
  • FAR 52.216-11 Cost Contract—No Fee.
    …mated cost shown in the Schedule, the Contracting Officer may withhold further payment of allowable cost until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government's interest. This r…
  • FAR 52.216-12 Cost-Sharing Contract—No Fee.
    …erformance shown in the Schedule, the Contracting Officer may withhold further payment of allowable cost until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government's interest. This r…
  • FAR 52.232-16 Progress Payments.
    …nt under this contract. The Contracting Officer will consider cost of money that would be allowable under Federal Acquisition Regulation (FAR) 31.205-10 as an incurred cost for progress payment purposes. (2) The amount of financing and oth…
  • FAR 52.248-1 Value Engineering.
    …plied by the number of instant contract units affected by the VECP, less the Contractor's allowable development and implementation costs; (2) Concurrent contract savings, which are net reductions in the prices of other contracts that are d…
  • DFARS 216.307 Contract clauses.
    … to contracts awarded before September 30, 2013, that include the clause at FAR 52.216-7, Allowable Cost and Payment; and (2) In contracts awarded before September 30, 2013, that— (i) Include the clause at FAR 52.216-7, Allowable Cost and…
  • DFARS 252.216-7009 Allowability of Legal Costs Incurred in Connection with a Whistleblower Proceeding.
    …r Proceeding (DEC 2022) Pursuant to 10 U.S.C. 3750, notwithstanding FAR clause 52.216-7, Allowable Cost and Payment— (a) The restrictions of FAR 31.205-47(b) on allowability of costs related to legal and other proceedings also apply to an…
  • FAR 16.603-4 Contract clauses.
    …te I. (c) The contracting officer shall also insert the clause at 52.216-26, Payments of Allowable Costs Before Definitization, in solicitations and contracts if a cost-reimbursement definitive contract is contemplated, unless the acquisit…
  • FAR 42.705-1 Contracting officer determination procedure.
    …d state and local governments (see 42.705-5). (b) Procedures. (1) In accordance with the Allowable Cost and Payment clause at 52.216-7, the contractor is required to submit an adequate final indirect cost rate proposal to the contracting o…
  • FAR 42.708 Quick-closeout procedure.
    … or acquisitions, special contract provisions limiting contractor's recovery of otherwise allowable indirect costs under cost reimbursement or time-and-materials contracts; and (4) Agreement can be reached on a reasonable estimate of alloc…
  • FAR 49.303-4 Adjustment of indirect costs.
    (a) If the contract contains the clause at 52.216-7, Allowable Cost and Payment, and it appears that adjustment of indirect costs will unduly delay final settlement, the TCO, after obtaining information from the appropriate audit agency, ma…
  • FAR 49.603-4 Cost-reimbursement contracts—complete termination, with settlement limited to fee.
    …amount due the Contractor on account of its fee under the contract. (3) The Contractor's allowable costs under the contract will be paid under the terms and conditions of the contract and parts 31 and 49 of the Federal Acquisition Regulati…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …ts incurred by the Contractor in excess of the ceiling price before the increase shall be allowable to the same extent as if the hours expended and material costs had been incurred after the increase in the ceiling price. (4) Access to rec…
  • FAR 52.216-4 Economic Price Adjustment—Labor and Material.
    …inge benefits) and unit prices of material shown in the Schedule results in an adjustment allowable under subparagraph (c)(3) below. The Contracting Officer shall modify this contract (1) to include the price adjustment and its effective da…
  • FAR 52.222-41 Service Contract Labor Standards.
    …e percentage of the journeyman's rate contained in the applicable wage determination. The allowable ratio of apprentices to journeymen employed on the contract work in any craft classification shall not be greater than the ratio permitted t…
  • FAR 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).
    …50 per hour. Even if the Contractor voluntarily increases the rate to $4.75 per hour, the allowable price adjustment is $.40 per hour; (2) An increased or decreased wage determination otherwise applied to the contract by operation of law; …
  • FAR 52.228-7 Insurance—Liability to Third Persons.
    …other than insurance required in accordance with this clause; provided, that such cost is allowable under the Allowable Cost and Payment clause of this contract. (g) If any suit or action is filed or any claim is made against the Contracto…
  • FAR 52.232-25 Prompt payment.
    …ll submit invoices for interim payments in accordance with paragraph (a) of FAR 52.216-7, Allowable Cost and Payment. If the invoice does not comply with contract requirements, it will be returned within 7 days after the date the designated…
  • FAR 52.248-3 Value Engineering—Construction.
    … reduction in Contractor cost of performance resulting from acceptance of the VECP, minus allowable Contractor's development and implementation costs, including subcontractors' development and implementation costs (see paragraph (h) below).…
  • DFARS 231.205-70 External restructuring costs.
    …d with external restructuring activities shall not be allowed unless— (1) Such costs are allowable in accordance with FAR part 31 and DFARS part 231; (2) An audit of projected restructuring costs and restructuring savings is performed; (…
  • DFARS 252.217-7012 Liability and insurance.
    …nment under this clause, the Government will reimburse the Contractor for the reasonable, allowable cost of the replacement or repair, plus a reasonable profit (if the work or replacement or repair was performed by the Contractor) less the …
  • DFARS 252.232-7006 Wide Area WorkFlow Payment Instructions.
    …he payment clause, contract financing clause, or Federal Acquisition Regulation 52.216-7, Allowable Cost and Payment, as applicable. (5) Receiving report. The Contractor shall ensure a receiving report meets the requirements of DFARS Appen…
  • DFARS 252.235-7001 Indemnification Under 10 U.S.C. 3861—Cost Reimbursement.
    …s clause. The obligations under this clause are excepted from the release required by the Allowable Cost, Fee, and Payment clause of this contract. (h) Under this clause, a claim, loss, or damage arises from the direct performance of this …
  • FAR 2.101 Definitions.
    …ngement under which the contractor bears some of the burden of reasonable, allocable, and allowable contract cost. Covered territory business, as defined at 15 U.S.C. 632(ff) and 13 CFR 125.1, means a small business concern that has its pr…
  • FAR 42.709-4 Assessing the penalty.
    … shall— (a) Assess the penalty in 42.709-2(a)(1), when the submitted cost is expressly unallowable under a cost principle in the FAR or an executive agency supplement that defines the allowability of specific selected costs; or (b) Assess…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.