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

FAR 16.207-2 Application.

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 explains when a firm-fixed-price, level-of-effort term contract can be used: for investigation or study in a specific research and development area. The contractor typically delivers a report of results, but payment depends on the effort spent, not on the results achieved.

Applies to: Firm-fixed-price, level-of-effort term contracts for research and development

Key terms: firm-fixed-price, level-of-effort term contract · level of effort · research and development area

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

The text

A firm-fixed-price, level-of-effort term contract is suitable for investigation or study in a specific research and development area. The product of the contract is usually a report showing the results achieved through application of the required level of effort. However, payment is based on the effort expended rather than on the results achieved.

← 16.207-1 Description. · 16.207-3 Limitations. →

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 16.207-2 Application · SpendQuery