252.236-7006 — Cost limitation.
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.236-7006 — Cost limitation.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.236-7006 Cost limitation. As prescribed in 236.570(b)(4), use the following provision: Cost Limitation (JAN 1997) (a) Certain items in this solicitation are subject to statutory cost limitations. The limitations are stated in the Schedule. (b) An offer which does not state separate prices for the items identified in the Schedule as subject to a cost limitation may be considered nonresponsive. (c) Prices stated in offers for items subject to cost limitations shall include an appropriate apportionment of all costs, direct and indirect, overhead, and profit. (d) Offers may be rejected which— (1) Are materially unbalanced for the purpose of bringing items within cost limitations; or (2) Exceed the cost limitations, unless the limitations have been waived by the Government prior to award. (End of provision) [56 FR 36479, July 31, 1991, as amended at 62 FR 2615, Jan. 17, 1997]
Compliance Checklist
- (c) Prices stated in offers for items subject to cost limitations shall include an appropriate apportionment of all costs, direct and indirect, overhead, and profit.
Flow-Down to Subcontractors
No flow-down required
This clause applies only to the prime contract and does not need to be flowed down to subcontractors.
Frequently Asked Questions
DFARS 252.236-7006 (Cost limitation.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.236-7006 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.