FAR 14.201-7—Contract clauses.
Plain-English Summary
FAR 14.201-7 tells contracting officers which standard clauses must be included in sealed bidding solicitations and resulting contracts, and when special versions or alternates apply. It covers four main clause families: 52.214-26, Audit and Records—Sealed Bidding; 52.214-27, Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding; 52.214-28, Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding; and 52.214-29, Order of Precedence—Sealed Bidding. The section also addresses when the American Recovery and Reinvestment Act of 2009 (ARRA) triggers use of Alternate I for the audit-and-records clause, including how to handle bilateral modifications and task- or delivery-order contracts where only some orders use ARRA funds. In addition, it explains limited waiver authority for certain foreign government contracts and a special no-consideration contract modification for replacing clause 52.214-28 with Alternate I in older prime contracts entered into before July 1, 2018. In practice, this section is a clause-selection checklist for sealed bidding: the contracting officer must match the clause version to the funding source, contract value, contract type, and whether the procurement uses the uniform contract format. Contractors should use it to confirm what audit, pricing, subcontractor, and precedence provisions will govern their bid and contract performance.
Key Rules
Insert audit clause in sealed bidding
For sealed bidding, the contracting officer must include 52.214-26, Audit and Records—Sealed Bidding, in solicitations and contracts. The basic clause applies when ARRA funds are not used and the expected contract amount exceeds the certified cost or pricing data threshold.
Use Alternate I for ARRA funds
If the acquisition will use ARRA funds, the contracting officer must use 52.214-26 with Alternate I in all solicitations and contracts. For bilateral modifications using ARRA funds, the officer must specifically state that Alternate I applies to that modification; for task- or delivery-order contracts, the officer must identify which orders are covered.
Add defective pricing clause above threshold
The contracting officer must insert 52.214-27, Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding, when the contract amount is expected to exceed the threshold for submission of certified cost or pricing data. This clause protects the Government if certified pricing data later proves defective.
Foreign government waiver is limited
The head of the contracting activity may waive inclusion of 52.214-27 in a contract with a foreign government or its agency, but only in exceptional cases. The waiver authority and the reasons for granting it must be documented in writing.
Include subcontractor data clause
The contracting officer must insert 52.214-28, Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding, when the contract amount is expected to exceed the certified cost or pricing data threshold. For prime contracts entered into before July 1, 2018, the contractor may request a no-consideration modification to replace the clause with Alternate I.
Foreign government waiver applies here too
As with the defective pricing clause, the head of the contracting activity may waive the requirement to include 52.214-28 in a contract with a foreign government or its agency in exceptional cases. The waiver and supporting reasons must be in writing.
Use order of precedence clause with UCF
When sealed bidding uses the uniform contract format, the contracting officer must insert 52.214-29, Order of Precedence—Sealed Bidding, in the solicitation and contract. This clause establishes how to resolve inconsistencies among contract documents.
Responsibilities
Contracting Officer
Select and insert the correct sealed-bidding clauses and alternates based on funding source, expected contract value, contract type, and whether the uniform contract format applies. The contracting officer must also identify when ARRA Alternate I applies to specific modifications or orders and process the no-consideration modification for eligible pre-July 1, 2018 prime contracts upon contractor request.
Head of the Contracting Activity
Approve any exceptional waiver of the clause requirements for contracts with a foreign government or agency of that government. The waiver decision and the reasons for it must be put in writing.
Contractor
Review the solicitation and contract to confirm the correct clause version is included, and request the permitted no-consideration modification to Alternate I for eligible prime contracts entered into before July 1, 2018. Contractors should also understand the audit, pricing, and precedence obligations created by the inserted clauses.
Agency
Ensure procurement planning and contract administration support correct clause selection, especially where ARRA funds are used, where only some orders are funded by ARRA, or where the uniform contract format is required.
Practical Implications
Clause selection is not automatic; the contracting officer must match the clause version to the facts of the acquisition, especially funding source and dollar threshold. Missing the right clause can create enforceability and administration problems later.
ARRA funding creates special handling requirements. If only some orders or a specific modification use ARRA funds, the officer must identify exactly which orders or modifications are covered rather than applying the alternate broadly by default.
The foreign government waiver is narrow and must be documented. Agencies should not treat it as a routine exception, and the written record should clearly explain why the waiver is justified.
The pre-July 1, 2018 modification rule for 52.214-28 is a legacy issue that can still matter on older contracts. Contractors with older prime contracts should check whether they can request the alternate without providing consideration.
When the uniform contract format applies, the order-of-precedence clause helps resolve conflicts among sections of the solicitation and contract. That makes it especially important for bidders to read the entire package consistently rather than relying on a single section.
Official Regulatory Text
(a) When contracting by sealed bidding, the contracting officer shall insert the clause at 52.214-26 , Audit and Records-Sealed Bidding, in solicitations and contracts as follows: (1) Use the basic clause if- (i) The acquisition will not use funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5); and (ii) The contract amount is expected to exceed the threshold at 15.403-4 (a)(1) for submission of certified cost or pricing data. (2) (i) If the acquisition will use funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009, use the clause with its Alternate I in all solicitations and contracts. (ii) (A) In the case of a bilateral contract modification that will use funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009, the contracting officer shall specify applicability of Alternate I to that modification. (B) In the case of a task- or delivery-order contract in which not all orders will use funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009, the contracting officer shall specify the task or delivery orders to which Alternate I applies. (b) (1) When contracting by sealed bidding, the contracting officer shall insert the clause at 52.214-27 , Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding, in solicitations and contracts if the contract amount is expected to exceed the threshold for submission of certified cost or pricing data at 15.403-4 (a)(1). (2) In exceptional cases, the head of the contracting activity may waive the requirement for inclusion of the clause in a contract with a foreign government or agency of that government. The authorizations for the waiver and the reasons for granting it shall be in writing. (c) (1) When contracting by sealed bidding, the contracting officer shall— (i) Insert the clause at 52.214-28 , Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding, in solicitations and contracts if the contract amount is expected to exceed the threshold for submission of certified cost or pricing data at 15.403-4 (a)(1); or (ii) Upon request of a contractor in connection with a prime contract entered into before July 1, 2018, the contracting officer shall modify the contract without requiring consideration to replace clause 52.214-28 , Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding, with its Alternate I. (2) In exceptional cases, the head of the contracting activity may waive the requirement for inclusion of the clause in a contract with a foreign government or agency of that government. The authorizations for the waiver and the reasons for granting it shall be in writing. (d) When contracting by sealed bidding the contracting officer shall insert the clause at 52.214-29 , Order of Precedence-Sealed Bidding, in solicitations and contracts to which the uniform contract format applies.