48 CFR § 243.204-70-4

48 CFR · Federal Acquisition Regulations System

§ 243.204-70-4 — Limitations on obligations.

TitleTitle 48: Federal Acquisition Regulations System PartPart 243: Contract Modifications

SourceeCFR (current through Apr 2, 2026)

This text of 48 C.F.R. § 243.204-70-4 (Limitations on obligations.) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

48 C.F.R. § 243.204-70-4 (2026).

Text

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]