DFARS 252.225-7027 Restriction on Contingent Fees for Foreign Military Sales
Clause Defense Federal Acquisition Regulation Supplement Apr 2003 version
Facts
- Citation
- DFARS 252.225-7027
- Type
- Clause
- Current version
- April 2003
- Prescribed in
- DFARS 225.7307(a)
- Supplements
- FAR Subpart 52.2 Text of Provisions and Clauses
- 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 clause.
Text
As prescribed in 225.7307 (a), use the following clause.
RESTRICTION ON CONTINGENT FEES FOR FOREIGN MILITARY SALES (APR 2003)
(a) Except as provided in paragraph (b) of this clause, contingent fees, as defined in the Covenant Against Contingent Fees clause of this contract, are generally an allowable cost, provided the fees are paid to—
(1) A bona fide employee of the Contractor; or
(2) A bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business.
(b) For foreign military sales, unless the contingent fees have been identified and payment approved in writing by the foreign customer before contract award, the following contingent fees are unallowable under this contract:
(1) For sales to the Government(s) of __________, contingent fees in any amount.
(2) For sales to Governments not listed in paragraph (b)(1) of this clause, contingent fees exceeding $50,000 per foreign military sale case.
(End of clause)
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Defense Federal Acquisition Regulation Supplement; Foreign Acquisition | ||
| Defense Federal Acquisition Regulation Supplement; Foreign Acquisition | Not on record |
Quick answers
What is DFARS 252.225-7027?
DFARS 252.225-7027 is a clause of the Defense Federal Acquisition Regulation Supplement, titled "Restriction on Contingent Fees for Foreign Military Sales".
What is the current version of DFARS 252.225-7027?
The current version is dated April 2003.
Where is DFARS 252.225-7027 prescribed?
It is prescribed in DFARS 225.7307(a), Contract clauses.
When was DFARS 252.225-7027 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 252.225-7027 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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