42.709-1 Scope.

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Title 48—Federal Acquisition Regulations System > CHAPTER 1—FEDERAL ACQUISITION REGULATION > SUBCHAPTER G—CONTRACT MANAGEMENT > PART 42—CONTRACT ADMINISTRATION AND AUDIT SERVICES > Subpart 42.7—Indirect Cost Rates

This text was captured on Sep 22, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

(a) This section implements 10 U.S.C. 3743 and 41 U.S.C. 4303. It covers the assessment of penalties against contractors which include unallowable indirect costs in—

(1) Final indirect cost rate proposals; or

(2) The final statement of costs incurred or estimated to be incurred under a fixed-price incentive contract.

(b) This section applies to all contracts in excess of $1 million, except fixed-price contracts without cost incentives or any firm-fixed-price contracts for the purchase of commercial products or commercial services.

[60 FR 42658, Aug. 16, 1995, as amended at 69 FR 76358, Dec. 20, 2004; 71 FR 57368, Sept. 28, 2006; 75 FR 53134, Aug. 30, 2010; 79 FR 24213, Apr. 29, 2014; 80 FR 38298, July 2, 2015. Redesignated at 81 FR 83104, Nov. 18, 2016; 85 FR 62489, Oct. 2, 2020. Redesignated at 86 FR 44255, Aug. 11, 2021; 86 FR 61030, Nov. 4, 2021; 87 FR 73900, Dec. 1, 2022; 90 FR 41880, Aug. 27, 2025]

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