DEV
This clause is modified by 2 active class deviations
- 2026-O0041 — DFARS RFO Implementation (Part 25)
- 2026-O0028 — DFARS RFO Implementation (Part 12)
252.225-7027 Restriction on contingent fees for foreign military sales. As prescribed in 225.7307(a), use the following clause. Restriction on Contingent Fees for Foreign Military Sales (APR 2003) (a) Except as provided in paragraph (b) of this clause, contingent fees, as defined in the Covenant Against Contingent Fees clause of this contract, are generally an allowable cost, provided the fees are paid to— (1) A bona fide employee of the Contractor; or (2) A bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business. (b) For foreign military sales, unless the contingent fees have been identified and payment approved in writing by the foreign customer before contract award, the following contingent fees are unallowable under this contract: (1) For sales to the Government(s) of ____________________________, contingent fees in any amount. (2) For sales to Governments not listed in paragraph (b)(1) of this clause, contingent fees exceeding $50,000 per foreign military sale case. (End of clause) [68 FR 15639, Mar. 31, 2003, as amended at 70 FR 73156, Dec. 9, 2005]
Change History
| Date | Authority | Type | Summary |
|---|---|---|---|
| 2026-02-17 | 2026-O0041 | RFO_CLAUSE_MODIFIED | R-DFARS 252.225-7027 Restriction on Contingent Fees for Foreign Military Sales updated from deviation 2026-O0041. |
| 2026-02-17 | 2026-O0041 | RFO_CLAUSE_MODIFIED | R-DFARS 252.225-7027 Restriction on Contingent Fees for Foreign Military Sales updated from deviation 2026-O0041. |
| 2026-02-17 | 2026-O0041 | RFO_CLAUSE_MODIFIED | R-DFARS 252.225-7027 Restriction on Contingent Fees for Foreign Military Sales updated from deviation 2026-O0041. |
| 2026-02-01 | 2026-O0028 | RFO_CLAUSE_ADDED | R-DFARS 252.225-7027 Contracts for Foreign Military Sales 22 U.S.C. 2779 added from deviation 2026-O0028. |
RFO
Prescription superseded under the RFO
The prescription shown below is from the codified eCFR. The Revolutionary FAR Overhaul relocates this clause's prescription as follows:
-
212.301→212.205-70(prescriptive text also revised)
See the deviation memorandum for the current prescription authority.
View deviation: 2026-O0041 → · View deviation: 2026-O0028 →R-DFARS Prescription Source
This clause is prescribed in the R-DFARS by the following deviation:
-
2026-O0041
— DFARS RFO Implementation (Part 25)
(DFARS Part 225)
Add clause 252.225-7027
225.7307(a)
(a) Use the clause at 252.225-7027 , Restriction on Contingent Fees for Foreign Military Sales, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, that are for FMS. Insert in paragraph (b)(1) of the clause the name(s) of any foreign country customer(s) listed in 225.7303-4 (b).
Prescription data sourced from eCFR as of 2026-06-15 02:15 UTC.
Cross-references within the prescription are not resolved automatically.
Regulatory Stack
The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.
R-DFARS
R-DFARS Prescription
Per Deviation 2026-O0041 (DFARS Part 225)
2026-O0041: DFARS RFO Implementation (Part 25) — DFARS Part 225
DFARS
DFARS Supplement (eCFR)
⚠ May be superseded by RFO
225.7307(a)
(a) Use the clause at 252.225-7027 , Restriction on Contingent Fees for Foreign Military Sales, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, that are for FMS. Insert in paragraph (b)(1) of the clause the name(s) of any foreign country customer(s) listed in 225.7303-4 (b).
Version History
Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.
2 versions tracked from 2016-12-22 to 2022-05-26.
MAY 2022
May 26, 2022
CURRENT
Removed in this version
Added in this version
Unchanged
DEC 2016 (previous)
MAY 2022 (current)
1 added, 1 removed
(1)
(1) For sales to the Government(s) of ______________, contingent fees in any amount.
(1)
(1) For sales to the Government(s) of ____________________________, contingent fees in any amount.
DEC 2016
December 22, 2016
SUBSTANTIVE
Earliest version available from the eCFR
Active Class Deviations
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