[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR342.7101-1]



[Page 71]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 342_CONTRACT ADMINISTRATION--Table of Contents

 

         Subpart 342.71_Administrative Actions for Cost Overruns

 

Sec. 342.7101-1  General.



    Upon receipt of information that a contractor's accumulated cost and 

projected expenditures will exceed the limit of funds obligated by the 

contract, the contracting officer shall coordinate immediately with the 

appropriate program office to determine whether the contract should be 

modified or terminated. If the contracting officer receives information 

from a source other than the contractor that a cost overrun is 

anticipated, the contracting officer shall verify the information with 

the contractor, and remind the contractor of the notification 

requirements of the Limitation of Cost clause.