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DFARS Clause ACTIVE

252.236-7006

Cost limitation.
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Effective Date
JAN 1997
Active Deviations
1
Versions
1 (since 2016-12-22)
DEV
This clause is modified by 1 active class deviation
  • 2026-O0019 — DFARS RFO Implementation (Part 36)
    Add clause 252.236-7006
View per-deviation details →
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]
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Prescription superseded under the RFO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:

  • 236.570236.101-71 (prescriptive text also revised)

See the deviation memorandum for the current prescription authority.

View deviation: 2026-O0019 →

R-DFARS Prescription Source

This clause is prescribed in the R-DFARS by the following deviation:

  • 2026-O0019 — DFARS RFO Implementation (Part 36) (DFARS Part 236)
    Add clause 252.236-7006
236.570(b)
(b) Use the following provisions and clauses in fixed-price construction contracts and solicitations as applicable -
(1) 252.236-7002, Obstruction of Navigable Waterways, when the contract will involve work near or on navigable waterways.
(2) When the head of the contracting activity has approved use of a separate bid item for mobilization and preparatory work, use either -
(i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this clause for major construction contracts that require - (A) Major or special items of plant and equipment; or (B) Large stockpiles of material which are in excess of the type, kind, and quantity which would be normal for a contractor qualified to undertake the work; or
(ii) 252.236-7004, Payment for Mobilization and Demobilization. Use this clause for contracts involving major mobilization expense, or plant equipment and material (other than the situations covered in paragraph (b)(2)(i) of this section) made necessary by the location or nature of the work. (A) Generally, allocate 60 percent of the lump sum price in paragraph (a) of the clause to the cost of mobilization. (B) Vary this percentage to reflect the circumstances of the particular contract, but in no event should mobilization exceed 80 percent of the payment item.
(3) 252.236-7005, Airfield Safety Precautions, when construction will be performed on or near airfields.
(4) 252.236-7006, Cost Limitation, if the solicitation's bid schedule contains one or more items subject to statutory cost limitations, and if a waiver has not been granted (FAR 36.205).
(5) 252.236-7007, Additive or Deductive Items, if the procedures in 236.213 are being used.
(6) 252.236-7008, Contract Prices - Bidding Schedule, if the contract will contain only unit prices for some items.
Prescription data sourced from eCFR as of 2026-06-10 03:16 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-O0019 (DFARS Part 236)
2026-O0019: DFARS RFO Implementation (Part 36) — DFARS Part 236

View Deviation 2026-O0019 →

DFARS DFARS Supplement (eCFR) ⚠ May be superseded by RFO 236.570(b)
(b) Use the following provisions and clauses in fixed-price construction contracts and solicitations as applicable -
(1) 252.236-7002, Obstruction of Navigable Waterways, when the contract will involve work near or on navigable waterways.
(2) When the head of the contracting activity has approved use of a separate bid item for mobilization and preparatory work, use either -
(i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this clause for major construction contracts that require - (A) Major or special items of plant and equipment; or (B) Large stockpiles of material which are in excess of the type, kind, and quantity which would be normal for a contractor qualified to undertake the work; or
(ii) 252.236-7004, Payment for Mobilization and Demobilization. Use this clause for contracts involving major mobilization expense, or plant equipment and material (other than the situations covered in paragraph (b)(2)(i) of this section) made necessary by the location or nature of the work. (A) Generally, allocate 60 percent of the lump sum price in paragraph (a) of the clause to the cost of mobilization. (B) Vary this percentage to reflect the circumstances of the particular contract, but in no event should mobilization exceed 80 percent of the payment item.
(3) 252.236-7005, Airfield Safety Precautions, when construction will be performed on or near airfields.
(4) 252.236-7006, Cost Limitation, if the solicitation's bid schedule contains one or more items subject to statutory cost limitations, and if a waiver has not been granted (FAR 36.205).
(5) 252.236-7007, Additive or Deductive Items, if the procedures in 236.213 are being used.
(6) 252.236-7008, Contract Prices - Bidding Schedule, if the contract will contain only unit prices for some items.

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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.

No version history available from eCFR.

Active Class Deviations

DFARS RFO Implementation (Part 36) Add clause 252.236-7006
MODIFIED
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