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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5 sections with “not-to-exceed (NTE) amount”

  • DFARS 205.303 Announcement of contract awards.
    … options, of more than $9 million. (A) For undefinitized contractual actions, report the not-to-exceed (NTE) amount. Later, if the definitized amount exceeds the NTE amount by more than $9 million, report only the amount exceeding the NTE.…
  • FAR 32.503-6 Suspension or reduction of payments.
    …utations (the current ceiling price under fixed-price incentive contracts) to include the not-to-exceed amount for any pending change orders and unpriced orders. (ii) Divide the revised contract price by the sum of the total costs incurred…
  • DFARS 217.7404 Limitations.
    …d under the contractual action is equal to more than 50 percent of the negotiated overall not-to-exceed price for the contractual action; (2) The head of the contracting activity, without power of redelegation, approves the definitization …
  • DFARS 217.7404-3 Definitization schedule.
    …ount of funds obligated under the contract action is equal to more than 50 percent of the not-to-exceed price. (b)(1) Submission of a qualifying proposal in accordance with the definitization schedule is a material element of the contract.…
  • DFARS 252.217-7027 Contract Definitization.
    …__ [insert “cost/price ceiling” or “firm-fixed price”] in no event to exceed__[insert the not-to-exceed amount]. (End of clause)

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.