48 CFR § 243.204-70-6

48 CFR · Federal Acquisition Regulations System

§ 243.204-70-6 — Allowable profit.

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

SourceeCFR (current through Apr 2, 2026)

This text of 48 C.F.R. § 243.204-70-6 (Allowable profit.) 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. § 243.204-70-6 (2026).

Text

243.204-70-6 Allowable profit. When the final price of an unpriced change order is negotiated after a substantial portion of the required performance has been completed, the head of the contracting activity shall ensure the profit allowed reflects—

(a)Any reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price;

(b)Any reduced cost risk to the contractor for costs expected to be incurred during performance of the remainder of the contract; and

(c)The extent to which costs have been incurred prior to definitization of the unpriced change order (see 215.404-71-3(d)(2)). The risk assessment shall be documented in the price negotiation memorandum . [75 FR 48277, Aug. 10, 2010, as amended at 83 FR 30587, June 29, 2018]

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243.204-70-6 Allowable profit.

When the final price of an unpriced change order is negotiated after a substantial portion of the required performance has been completed, the head of the contracting activity shall ensure the profit allowed reflects—

(a) Any reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price;

(b) Any reduced cost risk to the contractor for costs expected to be incurred during performance of the remainder of the contract; and

(c) The extent to which costs have been incurred prior to definitization of the unpriced change order (see 215.404-71-3(d)(2)). The risk assessment shall be documented in the price negotiation memorandum .

[75 FR 48277, Aug. 10, 2010, as amended at 83 FR 30587, June 29, 2018]