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 70 FR 73153 · DFARS Case 2003-D008
Defense Federal Acquisition Regulation Supplement; Foreign Acquisition 68 FR 15616 · DFARS Case 2002-D009 Not on record

Sections cited

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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