DFARS 243.204-70-4 Limitations on obligations

Subsection Defense Federal Acquisition Regulation Supplement

Facts

Citation
DFARS 243.204-70-4
Type
Subsection
Supplements
FAR 43.204 Administration
Last amended
75 FR 48276 Effective Aug 10, 2010
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, 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) Obligations should be consistent with the contractor’s requirements for the undefinitized period.

Federal Register history

Final rule Published Effective
Defense Federal Acquisition Regulation Supplement; Management of Unpriced Change Orders 75 FR 48276 · DFARS Case 2008-D034

Sections cited

Quick answers

What is DFARS 243.204-70-4?

DFARS 243.204-70-4 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Limitations on obligations".

When was DFARS 243.204-70-4 last changed?

The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Management of Unpriced Change Orders" (75 FR 48276), published Aug 10, 2010 and effective Aug 10, 2010.

Are changes to DFARS 243.204-70-4 proposed?

No proposed rule from the last 3 years is waiting on a final rule.

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