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Clauses · FAR · Pricing and audit

FAR 52.215-17 Waiver of Facilities Capital Cost of Money

Does the regulation require it to flow down?

No

No flow-down paragraph in the text. Primes include it in negotiated subcontracts (especially cost-type) when the sub did not propose FCCM, to lock the cost in as unallowable — template convenience and symmetry with the prime contract, not a mandate.

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-04 · edition OCT 1997 · base v0.9.3 Read the text ↗

What it makes you produce

One item for your checklist.

  1. Nothing to send now

    It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.

    • Nothing to send — facilities capital cost of money is unallowable on this contract, so it stays out of the invoices and out of the incurred-cost submission

      FAR 52.215-17

When it is used

Enters the contract when the offeror did NOT propose facilities capital cost of money (CAS 414) in the offer (15.408(i)). It is a one-sentence lock clause: didn't propose it, it became an unallowable cost. It appears in subcontracts when the prime replicates the same logic in its negotiation with the sub.

Read closely

The clause is two undesignated sentences, so there is no paragraph letter to give: it records that the contractor did not propose the cost and that it is therefore unallowable. The decision it prices sits before signature, while FAR 52.215-16 is still live — a company with a plant, expensive machinery or a lab is leaving money out of the spreadsheet by not proposing it.

The 8 templates that name it, with the line
143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 144155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 146233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1253255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 944243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 1867122GD Mission Systems SCM-TMP-095 — FFP Purchase Orders for Commercial/COTS Products or Services in Support of a U.S. Government ContractGeneral Dynamicsline 995273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 566178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 426

Source: acquisition.gov, FAR 52.215-17 and 15.408(i) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.