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FAR and DFARS › FAR Part 16: Types of Contracts › Subpart 16.3

FAR 16.302 Cost contracts.

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 describes a cost contract as a cost-reimbursement contract where the contractor receives no fee. It may be appropriate for research and development work, especially with nonprofit educational institutions or other nonprofit organizations. The limitations in 16.301-3 also apply.

Applies to: Contractors, especially nonprofit educational institutions or other nonprofit organizations, doing research and development work

Key terms: cost contract · cost-reimbursement contract · fee · research and development · nonprofit educational institutions

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

The text

(a) Description. A cost contract is a cost-reimbursement contract in which the contractor receives no fee.

(b) Application. A cost contract may be appropriate for research and development work, particularly with nonprofit educational institutions or other nonprofit organizations.

(c) Limitations. See 16.301-3.

Sections it refers to

Sections that refer to it

← 16.301-3 Limitations. · 16.303 Cost-sharing contracts. →

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 16.302 Cost contracts · SpendQuery