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DFARS 252.225-7027 Restriction on Contingent Fees for Foreign Military Sales. Basic (Apr 2003)

As prescribed in 225.7307(a), use the clause at 252.225-7027, Restriction on Contingent Fees for Foreign Military Sales, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that are for FMS. Insert in paragraph (b)(1) of the clause the name(s) of any foreign country customer(s) listed in 225.7303-4(b).


      (a)  Except as provided in paragraph (b) of this clause, contingent fees, as defined in the Covenant Against Contingent Fees clause of this contract, are generally an allowable cost, provided the fees are paid to—

           (1)  A bona fide employee of the Contractor; or 

              (2)  A bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business.

      (b)  For foreign military sales, unless the contingent fees have been identified and payment approved in writing by the foreign customer before contract award, the following contingent fees are unallowable under this contract:

              (1)  For sales to the Government(s) of __________, contingent fees in any amount.

              (2)  For sales to Governments not listed in paragraph (b)(1) of this clause, contingent fees exceeding $50,000 per foreign military sale case.

(End of clause)


Prime’s Interest;
  DFARS 212.301 (Applies to FMS.);


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