48 CFR § 243.204-70-4 - 243.204-70-4 Limitations on obligations.
---
identifier: "/us/cfr/t48/s243.204-70-4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 243.204-70-4 - 243.204-70-4 Limitations on obligations."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "243.204-70-4"
section_name: "243.204-70-4 Limitations on obligations."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "G"
subchapter_name: "CONTRACT MANAGEMENT"
part_number: "243"
part_name: "CONTRACT MODIFICATIONS"
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 36446, July 31, 1991, unless otherwise noted."
cfr_part: "243"
---
# 243.204-70-4 243.204-70-4 Limitations on obligations.
(a) The Government shall not obligate more than 50 percent of the not-to-exceed price before definitization. However, if a contractor submits a qualifying proposal before 50 percent of the not-to-exceed price has been obligated by the Government, the limitation on obligations before definitization may be increased to no more than 75 percent (*see* 232.102-70 for coverage on provisional delivery payments).
(b) Obligations should be consistent with the contractor's requirements for the undefinitized period.
[75 FR 48277, Aug. 10, 2010]