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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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89 sections with “Price risk”: the first 40

  • DFARS 252.204-7024 Notice on the Use of the Supplier Performance Risk System.
    …duce performance risk resulting in safety issues, mission degradation, or monetary loss. Price risk means a measure of whether a proposed price for a product or service is consistent with historical prices paid for that item or service. S…
  • FAR 15.405 Price negotiation.
    (a) The purpose of performing cost or price analysis is to develop a negotiation position that permits the contracting officer and the offeror an opportunity to reach agreement on a fair and reasonable price. A fair and reasonable price doe…
  • FAR 16.403-1 Fixed-price incentive (firm target) contracts.
    (a) Description. A fixed-price incentive (firm target) contract specifies a target cost, a target profit, a price ceiling (but not a profit ceiling or floor), and a profit adjustment formula. These elements are all negotiated at the outset.…
  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    …1)(i), insert the following clause: Termination for Convenience of the Government (Fixed-Price) (APR 2012) (a) The Government may terminate performance of work under this contract in whole or, from time to time, in part if the Contracting…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    …adjustment added to the profit objective for contract type risk. It only applies to fixed-price contracts that provide for progress payments. Though it uses a formula approach, it is not intended to be an exact calculation of the cost of wo…
  • DFARS 252.228-7001 Ground and Flight Risk.
    … (f) Contractor's exclusion of insurance costs. The Contractor warrants that the contract price does not and will not include, except as may be authorized in this clause, any charge or contingency reserve for insurance (including the Contra…
  • FAR 49.603-2 Fixed-price contracts—partial termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts partially terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated __________________. …
  • DFARS 204.7603 Procedures.
    The contracting officer shall consider price risk and supplier risk, if available in SPRS, as a part of the award decision. For procurement of an end product identified by a material identifier that is available as described at PGI 204.7603…
  • DFARS 215.404-1 Proposal analysis techniques.
    …ts or support equipment, perform an analysis of— (A) Those line items where the proposed price exceeds by 25 percent or more the lowest price the Government has paid within the most recent 12-month period based on reasonably available data…
  • FAR 28.306 Insurance under fixed-price contracts.
    … ordinarily concerned with the contractor's insurance coverage if the contract is a fixed-price contract, in special circumstances agencies may specify insurance requirements under fixed-price contracts. Examples of such circumstances inclu…
  • DFARS 252.235-7000 Indemnification Under 10 U.S.C. 3861—Fixed Price.
    …ribed in 235.070-3, use the following clause: Indemnification Under 10 U.S.C. 3861—Fixed Price (DEC 2022) (a) This clause provides for indemnification under 10 U.S.C. 3861 if the Contractor meets all the terms and conditions of this claus…
  • FAR 2.101 Definitions.
    …bstantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these serv…
  • FAR 7.105 Contents of written acquisition plans.
    …tion. Discuss the rationale for the selection of contract type. For other than firm-fixed-price contracts, see 16.103(d) for additional documentation guidance. Acquisition personnel shall document the acquisition plan with findings that det…
  • FAR 8.404 Use of Federal Supply Schedules.
    …the supply or service. (d) Pricing. Supplies offered on the schedule are listed at fixed prices. Services offered on the schedule are priced either at hourly rates, or at a fixed price for performance of a specific task (e.g., installation…
  • FAR 12.207 Contract type.
    (a) Except as provided in paragraph (b) of this section, agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial products or commercial services. (b)(1) A time…
  • FAR 15.305 Proposal evaluation.
    …sks supporting proposal evaluation shall be documented in the contract file. (1) Cost or price evaluation. Normally, competition establishes price reasonableness. Therefore, when contracting on a firm-fixed-price or fixed-price with econom…
  • FAR 15.404-1 Proposal analysis techniques.
    (a) General. The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable. (1) The contracting officer is responsible for evaluating the reasonableness of the offered prices. The analytical techniqu…
  • FAR 15.404-4 Profit.
    … for establishing the profit or fee portion of the Government prenegotiation objective in price negotiations based on cost analysis. (1) Profit or fee prenegotiation objectives do not necessarily represent net income to contractors. Rather…
  • FAR 15.407-2 Make-or-buy programs.
    …tractor's make-or-buy program when necessary to ensure negotiation of reasonable contract prices, satisfactory performance, or implementation of socioeconomic policies. Consent to subcontracts and review of contractors' purchasing systems a…
  • FAR 16.103 Negotiating contract type.
    …nd requires the exercise of sound judgment. Negotiating the contract type and negotiating prices are closely related and should be considered together. The objective is to negotiate a contract type and price (or estimated cost and fee) that…
  • FAR 16.104 Factors in selecting contract types.
    …consider in selecting and negotiating the contract type. They include the following: (a) Price competition. Normally, effective price competition results in realistic pricing, and a fixed-price contract is ordinarily in the Government's in…
  • FAR 16.202-2 Application.
    A firm-fixed-price contract is suitable for acquiring commercial products or commercial services (see parts 2 and 12) or for acquiring other supplies or services on the basis of reasonably definite functional or detailed specifications (see…
  • FAR 16.203-4 Contract clauses.
    (a) Adjustment based on established prices—standard supplies. (1) The contracting officer shall, when contracting by negotiation, insert the clause at 52.216-2, Economic Price Adjustment—Standard Supplies, or an agency-prescribed clause as …
  • FAR 16.205-2 Application.
    A fixed-price contract with prospective price redetermination may be used in acquisitions of quantity production or services for which it is possible to negotiate a fair and reasonable firm fixed price for an initial period, but not for sub…
  • FAR 16.206-2 Application.
    A fixed-ceiling-price contract with retroactive price redetermination is appropriate for research and development contracts estimated at the simplified acquisition threshold or less when it is established at the outset that a fair and reaso…
  • FAR 16.505 Ordering.
    …rly describe all services to be performed or supplies to be delivered so the full cost or price for the performance of the work can be established when the order is placed. Orders shall be within the scope, issued within the period of perfo…
  • FAR 16.601 Time-and-materials contracts.
    …sitions of other than commercial products or commercial services awarded without adequate price competition (see 15.403-1(c)(1)), the contract shall specify separate fixed hourly rates that include wages, overhead, general and administrativ…
  • FAR 35.006 Contracting methods and contract type.
    … recommendations of technical personnel. Although the Government ordinarily prefers fixed-price arrangements in contracting, this preference applies in R&D contracting only to the extent that goals, objectives, specifications, and cost esti…
  • FAR 44.202-2 Considerations.
    …eople Who Are Blind or Severely Disabled (41 U.S.C. 8504) (see part 8)? (5) Was adequate price competition obtained or its absence properly justified? (6) Did the contractor adequately assess and dispose of subcontractors' alternate propo…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts completely terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated ____________________…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …conforming supplies or reperformance of nonconforming services at no increase in contract price. If repair/replacement or reperformance will not correct the defects or is not possible, the Government may seek an equitable price reduction or…
  • FAR 52.214-12 Preparation of Bids.
    …nished to the issuing office. (c) For each item offered, bidders shall (1) show the unit price, including, unless otherwise specified, packaging, packing, and preservation and (2) enter the extended price for the quantity of each item offe…
  • FAR 52.215-1 Instructions to Offerors—Competitive Acquisition.
    …visions included in the solicitation and agreement to furnish any or all items upon which prices are offered at the price set opposite each item; (iv) Names, titles, and telephone and facsimile numbers (and electronic addresses if availabl…
  • FAR 52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).
    …ny purchaser and (ii) may acquire the property under the conditions prescribed by, and at prices approved by, the Contracting Officer. The proceeds of any transfer or disposition will be applied to reduce any payments to be made by the Gove…
  • DFARS 204.7601 Definitions.
    …duce performance risk resulting in safety issues, mission degradation, or monetary loss. Price risk means the measure of whether a proposed price for a product or service is consistent with historical prices paid for that item or service. …
  • DFARS 228.370-2 General.
    …gligence of Government personnel, is the least of— (i) $200,000; (ii) 20 percent of the price or estimated acquisition cost of affected aircraft; or (iii) 20 percent of the price or estimated cost of the contract, task order, or delivery…
  • DFARS 235.006 Contracting methods and contract type.
    …04; and (B) Notify the milestone decision authority of an intent not to exercise a fixed-price production option on a development contract for a major weapon system reasonably in advance of the expiration of the option exercise period. (i…
  • DFARS 243.204-70-6 Allowable profit.
    When the final price of an unpriced change order is negotiated after a substantial portion of the required performance has been completed, the head of the contracting activity shall ensure the profit allowed reflects— (a) Any reduced cost …
  • DFARS 244.305-70 Policy.
    …nd submit a corrected proposal; (ii) Considering another type of contract, e.g., a fixed-price incentive (firm target) contract instead of firm-fixed-price; (iii) Using additional cost analysis techniques to determine the reasonableness o…
  • FAR 7.103 Agency-head responsibilities.
    …cluding for cost-reimbursement and other high-risk contracts (e.g., other than firm-fixed-price contracts) requiring a written acquisition plan. A written plan shall be prepared for cost reimbursement and other high-risk contracts other tha…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.