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FAR and DFARS › FAR Part 16: Types of Contracts › Subpart 16.2

FAR 16.205-4 Contract clause.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers to include the Price Redetermination—Prospective clause in certain negotiated fixed-price contracts when specific conditions are met. For contractors, this means that if you are bidding on or performing such a contract, the clause will be part of the terms and may allow for future price adjustments.

Applies to: Contracting officers awarding negotiated fixed-price contracts

What it requires

  • Insert the clause at 52.216-5, Price Redetermination—Prospective, in solicitations and contracts when a fixed-price contract is contemplated and the conditions in 16.205-2 and 16.205-3(a) through (d) apply.

Key terms: Price Redetermination—Prospective · 52.216-5 · contracting by negotiation · fixed-price contract

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

The contracting officer shall, when contracting by negotiation, insert the clause at 52.216-5, Price Redetermination—Prospective, in solicitations and contracts when a fixed-price contract is contemplated and the conditions specified in 16.205-2 and 16.205-3(a) through (d) apply.

Sections it refers to

Sections that refer to it

  • 52.216-5 Price Redetermination—Prospective.

← 16.205-3 Limitations. · 16.206 Fixed-ceiling-price contracts with retroactive price redetermination. →

Rule changes for FAR Part 16

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 16.205-4 Contract clause · SpendQuery