(a) This section implements 10 U.S.C. 3743 and 41 U.S.C. 4303 . It covers the assessment of penalties against contractors which include unallowable indirect costs in- (1) Final indirect cost rate proposals; or(2) The final statement of costs incurred or estimated to be incurred under a fixed-price incentive contract.(b) This section applies to all contracts in excess of $800,000, except fixed-price contracts without cost incentives or any firm-fixed-price contracts for the purchase of commercial products or commercial services.60 FR 42658, Aug. 16, 1995, as amended at 69 FR 76358 , Dec. 20, 2004; 71 FR 57368 , Sept. 28, 2006; 75 FR 53134 , Aug. 30, 2010; 79 FR 24213 , Apr. 29, 2014; 80 FR 38298 , July 2, 2015. Redesignated at 81 FR 83104 , Nov. 18, 2016; 85 FR 62489 , Oct. 2, 2020. Redesignated at 86 FR 44255 , Aug. 11, 2021; 86 FR 61030 , Nov. 4, 2021; 87 FR 73900 , Dec. 1, 2022 85 FR 62489, 10/2/2020; 86 FR 61017, 12/6/2021; 87 FR 73900, 12/30/2022