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PGI 243.204-70-4: Limitations on obligations.

PGI › Part 243 › PGI 243.204-70-4

This PGI section supplements: DFARS 243.204-70-4 · FAR 43.204-70-4
The corresponding FAR Part 43 and DFARS Part 243 have been overhauled under the RFO. PGI replacement text is provided in the RFO deviation attachment. View FAR Part 43

Current Content

(a) The Government shall not obligate more than 50 percent of the not-to-exceed price before definitization. However, if a contractor submits a qualifying proposal before 50 percent of the not-to-exceed price has been obligated by the Government, the limitation on obligations before definitization may be increased to no more than 75 percent (see 232.102-70 for coverage on provisional delivery payments).

(b) Obligations should be consistent with the contractor’s requirements for the undefinitized period.

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