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FAR and DFARS › FAR Part 3: Improper Business Practices and Personal Conflicts of Interest › Subpart 3.5

FAR 3.501-1 Definition.

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 'buying-in' as submitting an offer below anticipated costs with the expectation of later increasing the contract amount or winning follow-on contracts at artificially high prices. It matters because it identifies a pricing practice that can lead to higher costs or unfair follow-on awards.

Applies to: Contractors submitting offers

Key terms: Buying-in · anticipated costs · change orders · follow-on contracts

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

The text

Buying-in as used in this section, means submitting an offer below anticipated costs, expecting to—

(1) Increase the contract amount after award (e.g., through unnecessary or excessively priced change orders); or

(2) Receive follow-on contracts at artificially high prices to recover losses incurred on the buy-in contract.

← 3.501 Buying-in. · 3.501-2 General. →

Rule changes for FAR Part 3

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

FAR 3.501-1 Definition · SpendQuery