---
kind: "section"
citation: "48 C.F.R. § 242.7204"
title: "48"
number: "242.7204"
heading: "Contract clause."
url: "https://uscodex.org/cfr/48/242.7204"
---

# §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.

## Notes

### Amendments

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

### Source

Source: 65 FR 77833, Dec. 13, 2000, unless otherwise noted.

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36437, July 31, 1991, unless otherwise noted.

### Amendments

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