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

FAR 16.305 Cost-plus-award-fee 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 defines a cost-plus-award-fee contract as a cost-reimbursement contract with a fee made up of a base amount (which may be zero) fixed at the start and an award amount based on the Government's judgmental evaluation of performance. It matters to contractors because it tells you the fee structure and points you to other sections for the full description and the limits on using these contracts.

Applies to: Cost-plus-award-fee contracts

Key terms: cost-reimbursement contract · base amount · award amount · judgmental evaluation · incentive contracts

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

The text

A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (a) a base amount (which may be zero) fixed at inception of the contract and (b) an award amount, based upon a judgmental evaluation by the Government, sufficient to provide motivation for excellence in contract performance. Cost-plus-award-fee contracts are covered in subpart 16.4, Incentive Contracts. See 16.401(e) for a more complete description and discussion of the application of these contracts. See 16.301-3 and 16.401(e)(5) for limitations.

Sections it refers to

← 16.304 Cost-plus-incentive-fee contracts. · 16.306 Cost-plus-fixed-fee 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 16.305 Cost-plus-award-fee contracts · SpendQuery