---
kind: "section"
citation: "48 C.F.R. § 44.204"
title: "48"
number: "44.204"
heading: "Contract clauses."
url: "https://uscodex.org/cfr/48/44.204"
---

# §44.204. Contract clauses.

- (a)
  - (1) The contracting officer shall insert the clause at 52.244-2, Subcontracts, in solicitations and contracts when contemplating—
    - (i) A cost-reimbursement contract;
    - (ii) A letter contract that exceeds the simplified acquisition threshold;
    - (iii) A fixed-price contract that exceeds the simplified acquisition threshold under which unpriced contract actions (including unpriced modifications or unpriced delivery orders) are anticipated;
    - (iv) A time-and-materials contract that exceeds the simplified acquisition threshold; or
    - (v) **A labor-hour contract that exceeds the simplified acquisition threshold.**
  - (2) If a cost-reimbursement contract is contemplated, for civilian agencies other than the Coast Guard and the National Aeronautics and Space Administration, the contracting officer shall use the clause with its Alternate I.
  - (3) **Use of this clause is not required in—**
    - (i) Fixed-price architect-engineer contracts; or
    - (ii) Contracts for mortuary services, refuse services, or shipment and storage of personal property, when an agency-prescribed clause on approval of subcontractors' facilities is required.
- (b) The contracting officer may insert the clause at 52.244-4, Subcontractors and Outside Associates and Consultants (Architect-Engineer Services), in architect-engineer contracts.
- (c) The contracting officer shall, when contracting by negotiation, insert the clause at 52.244-5, Competition in Subcontracting, in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold, unless—
  - (1) A firm-fixed-price contract, awarded on the basis of adequate price competition or whose prices are set by law or regulation, is contemplated; or
  - (2) **A time-and-materials, labor-hour, or architect-engineer contract is contemplated.**

## Notes

### Amendments

[63 FR 34060, June 22, 1998, as amended at 64 FR 51845, Sept. 24, 1999; 71 FR 226, Jan. 3, 2006]

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42388, Sept. 19, 1983, unless otherwise noted.

### Amendments

[63 FR 34060, June 22, 1998, as amended at 64 FR 51845, Sept. 24, 1999; 71 FR 226, Jan. 3, 2006]