48 CFR § 243.204-70-4

48 CFR · Federal Acquisition Regulations System

§ 243.204-70-4 — Limitations on obligations.

eCFR · current through Aug 7, 2026

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]

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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]

48 C.F.R. § 243.204-70-4 (Limitations on obligations.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.