252.236-7006 Cost limitation.
Prescription and Applicability
DFARS Prescription, 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.
Current 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]
Active Class Deviations Affecting This Clause
Class Deviation 2026-O0019, DFARS RFO Implementation (Part 36)
- Status: Active
- Date Issued: 2026-02-01
- Change type: MODIFIED
- Action: Modified by RFO class deviation
Suggested Questions
You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?