What is NTE?
glossary · NTE
NTE stands for Not To Exceed. It is a contract term that caps the maximum dollar amount the government will obligate against a specific contract, task order, or modification. NTE puts a ceiling on the total spend even when the actual cost is uncertain.
You will see NTE most often on time-and-materials contracts, indefinite-delivery vehicles, and modifications. The ceiling can be raised through a contract modification if both parties agree.
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