[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR29.401-3]



[Page 572]

 

            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]