This text is not in eCFR or DITA. It is extracted from the Revolutionary FAR Overhaul deviation guide for FAR Part 36. The parsed text is a convenience layer; the Source PDF tab is authoritative. Always verify against the official deviation PDF.
As prescribed in 236.101-71(b). See the Prescription tab for the prescribing policy text.
COST LIMITATION (JAN 1997)
- (a) Certain items in this solicitation are subject to statutory cost limitations. The limitations are stated in the Schedule.
- (b) An offer which does not state separate prices for the items identified in the Schedule as subject to a cost limitation may be considered nonresponsive.
- (c) Prices stated in offers for items subject to cost limitations shall include an appropriate apportionment of all costs, direct and indirect, overhead, and profit.
- (d) Offers may be rejected which—
- (1) Are materially unbalanced for the purpose of bringing items within cost limitations; or
- (2) Exceed the cost limitations, unless the limitations have been waived by the Government prior to award.
Prescription: 236.101-71 Clauses
As prescribed in 236.101-71(b). Scope applicability here before applying the provision.
- (b) Insert the following provisions and clauses in fixed-price construction contracts and solicitations as applicable—
- (1) 252.236-7002, Obstruction of Navigable Waterways, when the contract will involve work near or on navigable waterways.
- (2) When the head of the contracting activity has approved use of a separate bid item for mobilization and preparatory work, insert either—
- (i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this clause for major construction contracts that require—
- (A) Major or special items of plant and equipment; or
- (B) Large stockpiles of material which are in excess of the type, kind, and quantity which would be normal for a contractor qualified to undertake the work; or
- (ii) 252.236-7004, Payment for Mobilization and Demobilization. Use this clause for contracts involving major mobilization expense, or plant equipment and material (other than the situations covered in paragraph (b)(2)(i) of this section) made necessary by the location or nature of the work.
- (A) Generally, allocate 60 percent of the lump sum price in paragraph
- (a) of the clause to the cost of mobilization.
- (B) Vary this percentage to reflect the circumstances of the particular contract, but in no event should mobilization exceed 80 percent of the payment item.
- (A) Generally, allocate 60 percent of the lump sum price in paragraph
- (i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this clause for major construction contracts that require—
- (3) 252.236-7005, Airfield Safety Precautions, when construction will be performed on or near airfields.
- (4) 252.236-7006, Cost Limitation, if the solicitation's bid schedule contains one or more items subject to statutory cost limitations, and if a waiver has not been granted (FAR 36.205).
- (5) 252.236-7007, Additive or Deductive Items, if the procedures in 236.101-1(2) are being used.
- (6) 252.236-7008, Contract Prices—Bidding Schedule, if the contract will contain only unit prices for some items.
Version history
One version on record, first captured 2026-06-11 15:52:31, effective February 1, 2026.
Prescription: 236.101-71
Prescribing text cropped from the same deviation PDF.
Provision text (page 17)
Rendered from the deviation PDF. Open the full PDF.
