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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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31 sections with “disallow”

  • FAR 42.801 Notice of intent to disallow costs.
    …ble for administering the contract may issue the contractor a written notice of intent to disallow specified costs incurred or planned for incurrence. However, before issuing the notice, the contracting officer responsible for administering…
  • FAR 52.242-1 Notice of Intent To Disallow Costs.
    …, or a contract providing for price redetermination is contemplated: Notice of Intent To Disallow Costs (APR 1984) (a) Notwithstanding any other clause of this contract— (1) The Contracting Officer may at any time issue to the Contractor…
  • FAR 47.403-3 Disallowance of expenditures.
    (a) Agencies shall disallow expenditures for U.S. Government-financed commercial international air transportation on foreign-flag air carriers unless there is attached to the appropriate voucher a memorandum adequately explaining why servic…
  • FAR 42.803 Disallowing costs after incurrence.
    …de for reimbursement of costs, and time-and-material and labor-hour contracts provide for disallowing costs during the course of performance after the costs have been incurred. The following procedures shall apply: (a) Contracting officer …
  • DFARS 242.803 Disallowing costs after incurrence.
    …ance of DCAA Form 1 on any cost when there is reason to believe it should be suspended or disallowed.
  • FAR 30.606 Resolving cost impacts.
    …h of the following actions: (A) Reduce the contract price on fixed-price contracts. (B) Disallow costs on flexibly-priced contracts; and (iii) The CFAO may, in consultation with the affected contracting officers, increase or decrease ind…
  • FAR 42.705-1 Contracting officer determination procedure.
    …conciliation of all costs questioned, with identification of items and amounts allowed or disallowed in the final settlement as well as the disposition of period costing or allocability issues, (C) reasons why any recommendations of the au…
  • FAR 42.709-2 General.
    … allowability of specific selected costs, the penalty is equal to— (i) The amount of the disallowed costs allocated to contracts that are subject to this section for which an indirect cost proposal has been submitted; plus (ii) Interest o…
  • FAR 42.709-4 Assessing the penalty.
    …ard of Contract Appeals or court decision involving the contractor, which upheld the cost disallowance; or (4) A determination or agreement of unallowability under 31.201-6. (c) Issue a final decision (see 33.211) which includes a demand …
  • FAR 42.709-5 Computing interest.
    For 42.709-2(a)(1)(ii), compute interest on any paid portion of the disallowed cost as follows: (a) Consider the overpayment to have occurred, and interest to have begun accumulating, from the midpoint of the contractor's fiscal year. Use …
  • FAR 42.800 Scope of subpart.
    This subpart prescribes policies and procedures for (a) issuing notices of intent to disallow costs and (b) disallowing costs already incurred during the course of performance.
  • FAR 52.242-3 Penalties for Unallowable Costs.
    …lected costs, the Contractor shall be assessed a penalty equal to— (1) The amount of the disallowed cost allocated to this contract; plus (2) Simple interest, to be computed— (i) On the amount the Contractor was paid (whether as a progre…
  • FAR 4.804-5 Procedures for closing out contract files.
    …nt clearance report is received; (6) Property clearance is received; (7) All interim or disallowed costs are settled; (8) Price revision is completed; (9) Subcontracts are settled by the prime contractor; (10) Prior year indirect cost …
  • FAR 15.407-1 Defective certified cost or pricing data.
    …ere been no defective subcontractor certified cost or pricing data shall be the basis for disallowance or nonrecognition of costs under the clauses prescribed in 15.408(b) and (c). The Government has a continuing and direct financial intere…
  • FAR 31.105 Construction and architect-engineer contracts.
    …hey serve to express the parties' understanding and avoid possible subsequent disputes or disallowances. (2) Construction equipment, as used in this section, means equipment (including marine equipment) in sound workable condition, either …
  • FAR 31.109 Advance agreements.
    ….6, and 31.7 of certain costs may be difficult to determine. To avoid possible subsequent disallowance or dispute based on unreasonableness, unallocability or unallowability under the specific cost principles at subparts 31.2, 31.3, 31.6, a…
  • FAR 31.201-2 Determining allowability.
    …cable cost principles in this subpart and agency supplements. The contracting officer may disallow all or part of a claimed cost that is inadequately supported.
  • FAR 31.201-6 Accounting for unallowable costs.
    …heir allocable share of costs from the cost pool, no further action is required to assure disallowance of the directly associated costs. In all other cases, the directly associated costs, if material in amount, must be purged from the cost …
  • FAR 32.412 Contract clause.
    …r's financial strength, good performance record, and favorable experience concerning cost disallowances, the contracting officer shall use the clause with its Alternate I. (c) If a cost-reimbursement contract is contemplated, the contracti…
  • FAR 42.302 Contract administration functions.
    … be suspended or disapproved, and approve final vouchers. (8) Issue Notices of Intent to Disallow or not Recognize Costs (see subpart 42.8). (9) Establish final indirect cost rates and billing rates for those contractors meeting the crite…
  • FAR 42.704 Billing rates.
    …t the proposed indirect cost rates, as approved by the Government to reflect historically disallowed amounts from prior years' audits, until the proposal has been audited and settled. The historical decrement will be determined by either th…
  • FAR 42.802 Contract clause.
    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 redeterm…
  • FAR 47.404 Air freight forwarders.
    …n (49 U.S.C. 1301(24)(c)) for U.S. Government-financed movements of property. The rule on disallowance of expenditures in 47.403-3(a) applies also to the air carriers used by these international air freight forwarders. (b) Agency personnel…
  • FAR 49.109-7 Settlement by determination.
    …rmation, schedules, and analyses as appropriate. The TCO shall explain each major item of disallowance. The TCO need not reconsider any other action relating to the terminated portion of the contract that was ratified or approved by the TCO…
  • FAR 49.303-1 Submission of settlement proposal.
    …O authorizes otherwise. The proposal shall not include costs that have been— (a) Finally disallowed by the contracting officer; or (b) Previously vouchered and formally questioned by the Government but not yet decided as to allowability.
  • FAR 49.303-5 Final settlement.
    …r under the terminated contract. However, no amount shall be allowed for any item of cost disallowed by the Government, nor for any other item of cost of the same nature. (d) If an overall settlement of costs is agreed upon, agreement on e…
  • FAR 49.603-3 Cost-reimbursement contracts—complete termination, if settlement includes cost.
    …mounts and describe the claims on which the Contracting Officer has made findings and has disallowed and on which the Contractor has taken, or intends to take, timely appeal.] (xii) Unresolved demands or assertions by the Contractor agains…
  • FAR 52.216-7 Allowable Cost and Payment.
    …shall not change any monetary ceiling, contract obligation, or specific cost allowance or disallowance provided for in this contract. The understanding is incorporated into this contract upon execution. (4) Failure by the parties to agree …
  • FAR 52.216-15 Predetermined Indirect Cost Rates.
    …shall not change any monetary ceiling, contract obligation, or specific cost allowance or disallowance provided for in this contract. The agreement is incorporated into this contract upon execution. (e) Pending establishment of predetermin…
  • FAR 52.232-12 Advance Payments.
    …r's financial strength, good performance record, and favorable experience concerning cost disallowances, add the following sentence, if appropriate, to paragraph (b) of the basic clause: However, for this contract, countersignature on beha…
  • FAR 52.247-63 Preference for U.S.-Flag Air Carriers.
    …n the absence of satisfactory proof of the necessity for foreign-flag air transportation, disallow expenditures from funds, appropriated or otherwise established for the account of the United States, for international air transportation sec…

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.