FAR 52.242-1 - Notice of Intent to Disallow Costs

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Prescribed in 42,802
Effective Date:	1 April 1984
Clause or Provision:	Clause
Provision or Clause Number:	52.242-1 - Notice of Intent to Disallow Costs
Principle Type And/Or Purpose of Contract:
Required:	Cost Reimbursement, Supply; Cost Reimbursement, R&D; Cost Reimbursement, Service; Cost Reimbursement, Construction; Facilities
Applicable:	Time and Materials/Labor Hour; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Fixed Price, Supply; Communication Services; Leasing of Motor Vehicles; Time & Material/Labor Hour; Fixed Price, Construction; Fixed Price, Service; Fixed Price, R&D; Indefinite Delivery; Transportation; Utility Services
Optional:	Simplified Acquisition Procedures (Excludes Micro-Purchase)
Subject:
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription
Clause Overview:	Insertion Requirement As prescribed in 42.802, insert the following clause in solicitations and contracts when a cost-reimbursement contract, a fixed-price incentive contract, or a contract providing for price redetermination is contemplated: Clause (a) Notwithstanding any other clause of this contract— (1) The Contracting Officer may at any time issue to the Contractor a written notice of intent to disallow specified costs incurred or planned for incurrence under this contract that have been determined not to be allowable under the contract terms; and (2) The Contractor may, after receiving a notice under paragraph (a)(1) of this clause, submit a written response to the Contracting Officer, with justification for allowance of the costs. If the Contractor does respond within 60 days, the Contracting Officer shall, within 60 days of receiving the response, either make a written withdrawal of the notice or issue a written decision. (b) Failure to issue a notice under this Notice of Intent to Disallow Costs clause shall not affect the Government’s rights to take exception to incurred costs.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.