242.7204 Contract clause

Use the clause at 252.242-7004, Material Management and Accounting System, in all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial items and-

(a)  Are not awarded to small businesses, educational institutions, or nonprofit organizations; and

(b)  Are either-

(1)  Cost-reimbursement contracts; or

(2)  Fixed-price contracts with progress payments made on the basis of costs incurred by the contractor as work progresses under the contract.