[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: 48CFR42.709] [Page 799] TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM CHAPTER 1--FEDERAL ACQUISITION REGULATION PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents Subpart 42.7_Indirect Cost Rates Sec. 42.709 Scope. (a) This section implements 10 U.S.C. 2324 (a) through (d) and 41 U.S.C. 256 (a) through (d). It covers the assessment of penalties against contractors which include unallowable indirect costs in-- (1) Final indirect cost rate proposals; or (2) The final statement of costs incurred or estimated to be incurred under a fixed-price incentive contract. (b) This section applies to all contracts in excess of $550,000, except fixed-price contracts without cost incentives or any firm-fixed- price contracts for the purchase of commercial items. [60 FR 42658, Aug. 16, 1995, as amended at 69 FR 76358, Dec. 20, 2004] [[Page 800]]