FAR 42.709-7 Contract clause
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 42.709-7
- Type
- Subsection
- Last amended
- 90 FR 41872 Effective Oct 1, 2025
- Text as of
- FAC 2026-01
- 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
Use the clause at 52.242-3, Penalties for Unallowable Costs, in all solicitations and contracts over $1 million except fixed-price contracts without cost incentives or any firm-fixed-price contract for the purchase of commercial products or commercial services. Generally, covered contracts are those which contain one of the clauses at 52.216-7, 52.216-16, or 52.216-17, or a similar clause from an executive agency’s supplement to the FAR.
Federal Register history
Sections cited
- FAR 52.242-3 Penalties for Unallowable Costs
- FAR 52.216-7 Allowable Cost and Payment
- FAR 52.216-16 Incentive Price Revision-Firm Target
- FAR 52.216-17 Incentive Price Revision-Successive Targets
Quick answers
What is FAR 42.709-7?
FAR 42.709-7 is a subsection of the Federal Acquisition Regulation, titled "Contract clause".
When was FAR 42.709-7 last changed?
The most recent final rule on record is "Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds" (90 FR 41872), published Aug 27, 2025 and effective Oct 1, 2025.
Are changes to FAR 42.709-7 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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