48 CFR § 32.706-2 - 32.706-2 Clauses for limitation of cost or funds.
---
identifier: "/us/cfr/t48/s32.706-2"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 32.706-2 - 32.706-2 Clauses for limitation of cost or funds."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "32.706-2"
section_name: "32.706-2 Clauses for limitation of cost or funds."
chapter_number: 1
chapter_name: "FEDERAL ACQUISITION REGULATION"
subchapter_number: "E"
subchapter_name: "GENERAL CONTRACTING REQUIREMENTS"
part_number: "32"
part_name: "CONTRACT FINANCING"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113."
regulatory_source: "48 FR 42328, Sept. 19, 1983, unless otherwise noted."
cfr_part: "32"
---
# 32.706-2 32.706-2 Clauses for limitation of cost or funds.
(a) The contracting officer shall insert the clause at 52.232-20, Limitation of Cost, in solicitations and contracts if a fully funded cost-reimbursement contract is contemplated, whether or not the contract provides for payment of a fee.
(b) The contracting officer shall insert the clause at 52.232-22, Limitation of Funds, in solicitations and contracts if an incrementally funded cost-reimbursement contract is contemplated.
[48 FR 42328, Sept. 19, 1983, as amended at 72 FR 27385, May 15, 2007. Redesignated at 78 FR 37688, June 21, 2013]