DFARS 217.7404-4 Limitations on obligations
Subsection Defense Federal Acquisition Regulation Supplement
Facts
- Citation
- DFARS 217.7404-4
- Type
- Subsection
- Supplements
- FAR Part 17 Special Contracting Methods
- Last amended
- 74 FR 37649 Effective Jul 29, 2009
- Text as of
- DFARS Change May 7, 2026
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) The Government shall not obligate more than 50 percent of the not-to-exceed price before definitization. However, if a contractor submits a qualifying proposal before 50 percent of the not-to-exceed price has been obligated by the Government, then the limitation on obligations before definitization may be increased to no more than 75 percent (see 232.102-70 for coverage on provisional delivery payments).
(b) In determining the appropriate amount to obligate, the contracting officer shall assess the contractor’s proposal for the undefinitized period and shall obligate funds only in an amount consistent with the contractor’s requirements for the undefinitized period.
Federal Register history
Sections cited
- DFARS 232.102-70 Provisional delivery payments
Quick answers
What is DFARS 217.7404-4?
DFARS 217.7404-4 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Limitations on obligations".
When was DFARS 217.7404-4 last changed?
The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Requirements Applicable to Undefinitized Contract Actions (DFARS Case 2008-D029)" (74 FR 37649), published Jul 29, 2009 and effective Jul 29, 2009.
Are changes to DFARS 217.7404-4 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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