# 48 CFR § 42.709-1: 42.709-1 Scope

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-48-42.709-1

## Section

- **Citation:** 48 CFR § 42.709-1
- **Heading:** 42.709-1 Scope
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** 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

## 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]

## Nearby sections

- [48 CFR § 42.101 42.101 Contract audit responsibilities.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.101.md)
- [48 CFR § 42.102 42.102 Assignment of contract audit services.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.102.md)
- [48 CFR § 42.103 42.103 Contract audit services directory.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.103.md)
- [48 CFR § 42.201 42.201 Contract administration responsibilities.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.201.md)
- [48 CFR § 42.202 42.202 Assignment of contract administration.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.202.md)
- [48 CFR § 42.203 42.203 Contract administration services directory.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.203.md)
- [48 CFR § 42.301 42.301 General.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.301.md)
- [48 CFR § 42.302 42.302 Contract administration functions.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.302.md)
- [48 CFR § 42.401 42.401 Contract correspondence.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.401.md)
- [48 CFR § 42.402 42.402 Visits to contractors' facilities.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.402.md)
- [48 CFR § 42.403 42.403 Evaluation of contract administration offices.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.403.md)
- [48 CFR § 42.500 42.500 Scope of subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.500.md)
- [48 CFR § 42.501 42.501 General.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.501.md)
- [48 CFR § 42.502 42.502 Selecting contracts for postaward orientation.](https://www.frixlaw.com/law-library/statutes/ecfr-48-42.502.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-48-42.709-1. Check the current official text before relying on it. Not legal advice.