DFARS 225.7303-4 Contingent fees
Subsection Defense Federal Acquisition Regulation Supplement
Facts
- Citation
- DFARS 225.7303-4
- Type
- Subsection
- Supplements
- FAR Part 25 Foreign Acquisition
- Last amended
- 70 FR 73153 Effective Dec 9, 2005
- 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) Except as provided in paragraph (b) of this subsection, contingent fees are generally allowable under DoD contracts, provided—
(1) The fees are paid to a bona fide employee or a bona fide established commercial or selling agency maintained by the prospective contractor for the purpose of securing business (see FAR Part 31 and FAR Subpart 3.4); and
(2) The contracting officer determines that the fees are fair and reasonable.
(b)
(1) Under DoD 5105.38-M, LOAs for requirements for the governments of Australia, Taiwan, Egypt, Greece, Israel, Japan, Jordan, Republic of Korea, Kuwait, Pakistan, Philippines, Saudi Arabia, Turkey, Thailand, or Venezuela (Air Force) shall provide that all U.S. Government contracts resulting from the LOAs prohibit the reimbursement of contingent fees as an allowable cost under the contract, unless the contractor identifies the payments and the foreign customer approves the payments in writing before contract award (see 225.7307 (a)).
(2) For FMS to countries not listed in paragraph (b)(1) of this subsection, contingent fees exceeding $50,000 per FMS case are unallowable under DoD contracts, unless the contractor identifies the payment and the foreign customer approves the payment in writing before contract award.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Defense Federal Acquisition Regulation Supplement; Foreign Acquisition | ||
| Defense Federal Acquisition Regulation Supplement; Foreign Acquisition | Not on record |
Sections cited
- DFARS 225.7307(a) Contract clauses
Quick answers
What is DFARS 225.7303-4?
DFARS 225.7303-4 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Contingent fees".
When was DFARS 225.7303-4 last changed?
The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Foreign Acquisition" (70 FR 73153), published Dec 9, 2005 and effective Dec 9, 2005.
Are changes to DFARS 225.7303-4 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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