FAR clauses/Part 16/Checked 15 Sep 2026
FAR 52.216-7
Allowable Cost and Payment
- Clause date
- AUG 2018
- Prescribed at
- FAR 16.307(a). Insert when a cost-reimbursement contract or a time-and-materials contract (other than a contract for a commercial product or commercial service) is contemplated, with modifications prescribed for certain contractor types.
- Applies to
- Cost-reimbursement contracts and non-commercial time-and-materials contracts.
- Flowdown
- No flowdown required
52.216-7 contains no subcontract flowdown paragraph. It is not listed in 52.244-6(c)(1) or 52.212-5(e)(1). - Full text
- FAR 52.216-7 on Acquisition.gov
… (1) The Government will make payments to the Contractor when requested as work progresses, but (except for small business concerns) not more often than once every 2 weeks, in amounts determined to be allowable by the Contracting Officer in accordance with Federal Acquisition Regulation (FAR) subpart 31.2 in effect on the date of this contract and the terms of this contract. …
From the clause · Codified FAR · FAC 2026-01
Why it matters: The final indirect cost rate proposal is due within 6 months after each contractor fiscal year ends, and late submissions keep cost-type contracts from closing.
This is the codified text, not any agency's Revolutionary FAR Overhaul deviation. An agency running a class deviation may have this clause renumbered, rewritten or prescribed differently — check the deviation before you put a clause in a solicitation.
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Play today’s Clause & EffectMore Part 16 clauses
3- 52.216-18OrderingFAR 16.506(a)
- 52.216-19Order LimitationsFAR 16.506(b)
- 52.216-22Indefinite QuantityFAR 16.506(e)