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FAR and DFARS › DFARS Part 216: Types of Contracts › Subpart 216.3

DFARS 216.306 Cost-plus-fixed-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 DFARS section limits the use of cost-plus-fixed-fee contracts for military construction or military family housing projects. It prohibits such contracts funded by military construction appropriations if they are estimated to exceed $25,000 and will be performed in the United States (except Alaska), unless a specific written approval is obtained. Contractors should know that these contracts are generally restricted unless an exception applies.

Applies to: Contracts for military construction or military family housing projects funded by military construction appropriations

Key terms: cost-plus-fixed-fee contracts · military construction project · military family housing project · military construction appropriations act · environmental work

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

The text

(c) Limitations. For contracts in connection with a military construction project or military family housing project, see the prohibition at 216.301-3.

(i) Except as provided in paragraph (c)(ii) of this section, annual military construction appropriations acts prohibit the use of cost-plus-fixed-fee contracts that—

(A) Are funded by a military construction appropriations act;

(B) Are estimated to exceed $25,000; and

(C) Will be performed within the United States, except Alaska.

(ii) The prohibition in paragraph (c)(i) of this section does not apply to contracts specifically approved in writing, setting forth the reasons therefor, in accordance with the following:

(A) The Secretaries of the military departments are authorized to approve such contracts that are for environmental work only, provided the environmental work is not classified as construction, as defined by 10 U.S.C. 2801.

(B) The Secretary of Defense or designee must approve such contracts that are not for environmental work only or are for environmental work classified as construction.

Sections it refers to

Sections that refer to it

  • 232.703-70 Military construction appropriations act restriction.
  • 236.271 Cost-plus-fixed-fee contracts.

← 216.301-3 Limitations. · 216.307 Contract clauses. →

Rule changes for DFARS Part 216

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

DFARS 216.306 Cost-plus-fixed-fee contracts · SpendQuery