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

FAR 52.216-8 Fixed 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 governs how the Government pays a contractor's fixed fee under a cost-plus-fixed-fee contract. It lets the Contracting Officer withhold a reserve to protect the Government's interest and sets conditions for releasing withheld fee.

Applies to: Cost-plus-fixed-fee contracts, other than facilities or construction contracts

What it requires

  • Perform the contract to earn the fixed fee specified in the Schedule
  • Submit an adequate certified final indirect cost rate proposal covering the year of physical completion
  • Satisfy all other contract terms and conditions, including submitting final patent and royalty reports
  • Avoid being delinquent in submitting final vouchers on prior years' settlements

Key terms: fixed fee · Schedule · Contracting Officer · reserve · certified final indirect cost rate proposal

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

The text

As prescribed in 16.307(b), insert the following clause in solicitations and contracts when a cost-plus-fixed-fee contract (other than a facilities contract or a construction contract) is contemplated.

Fixed Fee (JUN 2011)

(a) The Government shall pay the Contractor for performing this contract the fixed fee specified in the Schedule.

(b) Payment of the fixed fee shall be made as specified in the Schedule; provided that the Contracting Officer withholds a reserve not to exceed 15 percent of the total fixed fee or $100,000, whichever is less, to protect the Government's interest. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years' settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor's past performance related to the submission and settlement of final indirect cost rate proposals.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.216-7 Allowable Cost and Payment. · 52.216-9 Fixed Fee—Construction. →

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 52.216-8 Fixed Fee · SpendQuery