Section 3416.307 - Contract clauses(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 "Federal Acquisition Regulation (FAR) subpart 31.2" from paragraph (a)(1) and substituting " 45 CFR part 75, appendix IX."(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 2 CFR part 200, subpart E.