NTE-CL

A Not-To-Exceed Ceiling Level specifies the maximum contract value that cannot be exceeded without modification. NTE-CL establishes firm upper bounds on government financial obligations, particularly important for cost-type and labor-hour contracts.

NTE-CL management prevents unauthorized cost overruns. Understanding NTE-CL implications helps contractors monitor spending against contract ceilings. NTE-CL notifications are required as costs approach ceiling values to enable timely ceiling increases or scope adjustments.