(a) If the clause at FAR 52.216-7 (Allowable Cost and Payment) is used in a contract with a hospital, the contracting officer must modify the clause by deleting the words ``Subpart 31.2 of the Federal Acquisition Regulation (FAR)'' from paragraph (a) and substituting ``34 CFR part 74, appendix E.''
(b) The contracting officer must insert the clause at 3452.216-70 (Additional cost principles) in all solicitations of and resultant cost-reimbursement contracts with nonprofit organizations other than educational institutions, hospitals, or organizations listed in Attachment C to Office of Management and Budget Circular A-122.
Subpart 3416.4_Incentive Contracts