48 CFR § 242.7204 - 242.7204 Contract clause.

---
identifier: "/us/cfr/t48/s242.7204"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 242.7204 - 242.7204   Contract clause."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "242.7204"
section_name: "242.7204   Contract clause."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "G"
subchapter_name: "CONTRACT MANAGEMENT"
part_number: "242"
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. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36437, July 31, 1991, unless otherwise noted."
cfr_part: "242"
---


# 242.7204 242.7204   Contract clause.

Use the clause at 252.242-7004, Material Management and Accounting System, in all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial products or commercial services and—

(a) Are not awarded to small businesses, educational institutions, or nonprofit organizations; and

(b) Are either—

(1) Cost-reimbursement contracts; or

(2) Fixed-price contracts with progress payments made on the basis of costs incurred by the contractor as work progresses under the contract.

[65 FR 77833, Dec. 13, 2000, as amended at 88 FR 6588, Jan. 31, 2023]