DFARS 243.204-70-6 Allowable Profit
Subsection Defense Federal Acquisition Regulation Supplement
Facts
- Citation
- DFARS 243.204-70-6
- Type
- Subsection
- Supplements
- FAR 43.204 Administration
- Last amended
- 83 FR 30584 Effective Jun 29, 2018
- 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
When the final price of an unpriced change order is negotiated after a substantial portion of the required performance has been completed, the head of the contracting activity shall ensure the profit allowed reflects—
(a) Any reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price;
(b) Any reduced cost risk to the contractor for costs expected to be incurred during performance of the remainder of the contract; and
(c) The extent to which costs have been incurred prior to definitization of the unpriced change order (see 215.404-71 -3 (d) (2)). The risk assessment shall be documented in the price negotiation memorandum.
Federal Register history
Sections cited
- DFARS 215.404-71 Weighted guidelines method
Quick answers
What is DFARS 243.204-70-6?
DFARS 243.204-70-6 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Allowable Profit".
When was DFARS 243.204-70-6 last changed?
The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement: Undefinitized Contract Action Definitization (DFARS Case 2015-D024)" (83 FR 30584), published Jun 29, 2018 and effective Jun 29, 2018.
Are changes to DFARS 243.204-70-6 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
On GovTribe
Follow the rules behind federal contracts
- Search Federal Register rules and proposed rules for the FAR, DFARS and agency supplements
- Solicitations, awards and government files in one search
- Ask GovTribe AI about the rules that apply to a contract