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FAC Number: 2023-01
Effective Date: 12/30/2022

42.709-1 Scope.

42.709-1 Scope.

      (a) This section implements 10 U.S.C. 3743 and 41 U.S.C.4303. It covers the assessment of penalties against contractors which include unallowable indirect costs in-

           (1) Final indirect cost rate proposals; or

           (2) The final statement of costs incurred or estimated to be incurred under a fixed-price incentive contract.

      (b) This section applies to all contracts in excess of $800,000, except fixed-price contracts without cost incentives or any firm-fixed-price contracts for the purchase of commercial products or commercial services.

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