48 CFR § 42.709-7 - 42.709-7 Contract clause.

---
identifier: "/us/cfr/t48/s42.709-7"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 42.709-7 - 42.709-7   Contract clause."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "42.709-7"
section_name: "42.709-7   Contract clause."
chapter_number: 1
chapter_name: "FEDERAL ACQUISITION REGULATION"
subchapter_number: "G"
subchapter_name: "CONTRACT MANAGEMENT"
part_number: "42"
part_name: "CONTRACT ADMINISTRATION AND AUDIT SERVICES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
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 42370, Sept. 19, 1983, unless otherwise noted."
cfr_part: "42"
---


# 42.709-7 42.709-7   Contract clause.

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.

[60 FR 42659, Aug. 16, 1995, as amended at 69 FR 76358, Dec. 20, 2004; 71 FR 57368, Sept. 28, 2006; 72 FR 27385, May 15, 2007; 75 FR 53134, Aug. 30, 2010; 80 FR 38298, July 2, 2015; 85 FR 62489, Oct. 2, 2020. Redesignated at 86 FR 44255, Aug. 11, 2021; 86 FR 61030, Nov. 4, 2021; 90 FR 41880, Aug. 27, 2025]