48 CFR § 242.7503 - 242.7503 Contract clause.

---
identifier: "/us/cfr/t48/s242.7503"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 242.7503 - 242.7503   Contract clause."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "242.7503"
section_name: "242.7503   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: "2026-03-24"
last_updated: "2026-03-24"
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"
---


# 242.7503 242.7503   Contract clause.

Use the clause at 252.242-7006, Accounting System Administration, in solicitations and contracts when contemplating—

(a) A cost-reimbursement, incentive type, time-and-materials, or labor-hour contract; or

(b) A contract with progress payments made on the basis of costs incurred by the contractor or on a percentage or stage of completion.

[76 FR 28870, May 18, 2011, as amended at 77 FR 11366, Feb. 24, 2012; 82 FR 61481, Dec. 28, 2017]