SpendQueryBeta

FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.216-12 Cost-Sharing Contract—No Fee.

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 clause is for cost-sharing contracts where the contractor receives no fee. It lets the Contracting Officer withhold further payment of allowable cost after paying 80 percent of the Government's share, to build a reserve protecting the Government's interest. The reserve is capped at the lesser of one percent of the Government's share of total estimated cost or $100,000.

Applies to: Contractors under a cost-sharing contract with no fee

Key terms: cost-sharing contract · fee · allowable cost · reserve · Contracting Officer

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

The text

As prescribed in 16.307(f), insert the following clause in solicitations and contracts when a cost-sharing contract is contemplated. This clause may be modified by substituting $10,000 in lieu of $100,000 as the maximum reserve in paragraph (b) if the contract is with a nonprofit organization.

Cost-Sharing Contract—No Fee (APR 1984)

(a) The Government shall not pay to the Contractor a fee for performing this contract.

(b) After paying 80 percent of the Government's share of the total estimated cost of performance shown in the Schedule, the Contracting Officer may withhold further payment of allowable cost until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government's interest. This reserve shall not exceed one percent of the Government's share of the total estimated cost shown in the Schedule or $100,000, whichever is less.

(End of clause)

Alternate I (APR 1984). In a contract for research and development with an educational institution, for which the contracting officer has determined that withholding of a portion of allowable cost is not required, delete paragraph (b) of the basic clause.

Sections it refers to

Sections that refer to it

← 52.216-11 Cost Contract—No Fee. · 52.216-13-52.216-14 [Reserved] →

Rule changes for FAR Part 52

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

FAR 52.216-12 Cost-Sharing Contract—No Fee · SpendQuery