[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR29.401-3]

[Page 554]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 29_TAXES--Table of Contents
 
                      Subpart 29.4_Contract Clauses
 
Sec.  29.401-3  Federal, State, and local taxes.

    (a) Except as provided in paragraph (b) of this section, insert the 
clause at 52.229-3, Federal, State, and Local Taxes, in solicitations 
and contracts if--
    (1) The contract is to be performed wholly or partly in the United 
States or its outlying areas;
    (2) A fixed-price contract is contemplated; and
    (3) The contract is expected to exceed the simplified acquisition 
threshold.
    (b) In a noncompetitive contract that meets all the conditions in 
paragraph (a) of this section, the contracting officer may insert the 
clause at 52.229-4, Federal, State, and Local Taxes (State and Local 
Adjustments), instead of the clause at 52.229-3, if the price would 
otherwise include an inappropriate contingency for potential postaward 
change(s) in State or local taxes.

[68 FR 13205, Mar. 18, 2003, as amended at 68 FR 28083, May 22, 2003]