FAR and DFARS › FAR Part 9: Contractor Qualifications › Subpart 9.3
FAR 9.305 Risk.
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 addresses who bears the risk for acquiring materials or starting production before first article approval. Normally, the contractor bears that risk alone, but the contracting officer is directed to build enough time into the delivery schedule to reduce it. If Government needs make that impossible, the contracting officer may authorize the contractor to buy specific materials or begin production early, and those authorized costs are allocable to the contract for progress payments and termination settlements for convenience.
Applies to: Contractors under contracts requiring first article approval
Key terms: first article approval · sole risk of the contractor · delivery schedule · progress payments · termination settlements
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Before first article approval, the acquisition of materials or components, or commencement of production, is normally at the sole risk of the contractor. To minimize this risk, the contracting officer shall provide sufficient time in the delivery schedule for acquisition of materials and components, and for production after receipt of first article approval. When Government requirements preclude this action, the contracting officer may, before approval of the first article, authorize the contractor to acquire specific materials or components or commence production to the extent essential to meet the delivery schedule (see Alternate II of the clause at 52.209-3, First Article Approval—Contractor Testing, and Alternate II of the clause at 52.209-4, First Article Approval—Government Testing. Costs incurred based on this authorization are allocable to the contract for—
(a) Progress payments; and
(b) Termination settlements if the contract is terminated for the convenience of the Government.
← 9.304 Exceptions. · 9.306 Solicitation requirements. →
Rule changes for FAR Part 9
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 9, 27, and 47 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Prohibition on Certain Semiconductor Products and Services ↗ · proposed 2026-02-17 · comments due 2026-04-20
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Controlled Unclassified Information ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk ↗ · proposed 2025-01-13
- Federal Acquisition Regulation: Improving Consistency Between Procurement and Nonprocurement Procedures on Suspension and Debarment ↗ · final rule 2025-01-03 · effective 2025-01-17
- Federal Acquisition Regulation: Certification of Service-Disabled Veteran-Owned Small Businesses ↗ · final rule 2024-12-16 · effective 2024-12-16
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.