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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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52 sections with “adjustment of fee”: the first 40

  • FAR 49.305 Adjustment of fee.
  • FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity.
    As prescribed in 3.104-9(b) insert the following clause: Price or Fee Adjustment for Illegal or Improper Activity (MAY 2014) (a) The Government, at its election, may reduce the price of a fixed-price type contract and the total cost and f…
  • FAR 52.216-10 Incentive Fee.
    …t and target fee. The target cost and target fee specified in the Schedule are subject to adjustment if the contract is modified in accordance with paragraph (d) below. (1) Target cost, as used in this contract, means the estimated cost of…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …ixed-price contracts and subcontracts described at FAR 16.202, 16.203, (except when price adjustments are based on actual costs of labor or material, described at 16.203-1(a)(2)), and 16.207; (2) Fixed-price incentive contracts and subcont…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    …of cost risk accepted by the contractor under varying contract types. The working capital adjustment is an adjustment added to the profit objective for contract type risk. It only applies to fixed-price contracts that provide for progress p…
  • DFARS 252.246-7001 Warranty of data.
    …rnment, inform the Contractor by written notice that the Government elects a price or fee adjustment instead of correction or replacement. (2) If the Contractor refuses or fails to comply with a direction under paragraph (d) (1)(i) of this…
  • FAR 16.405-1 Cost-plus-incentive-fee contracts.
    … contract type specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. After contract performance, the fee payable to the contractor is determined in accordance with the formula. The formula provides, …
  • FAR 17.207 Exercise of options.
    …time period specified in the contract. (b) When the contract provides for economic price adjustment and the contractor requests a revision of the price, the contracting officer shall determine the effect of the adjustment on prices under t…
  • FAR 32.704 Limitation of cost or funds.
    …tract is not to be further funded and that the contractor should submit a proposal for an adjustment of fee, if any, based on the percentage of work completed in relation to the total work called for under the contract; (iii) The contract …
  • FAR 49.303-3 Audit of settlement proposal.
    …udit agency for review (see 49.107). However, if the settlement proposal is limited to an adjustment of fee, no referral to the audit agency is required.
  • FAR 49.304-3 Submission of vouchers.
    When a partial termination settlement is limited to adjustment of fee, the contractor shall continue to submit the SF 1034, Public Voucher for Purchases and Services Other than Personal, for costs reimbursable under the contract. The contra…
  • FAR 52.226-1 Utilization of Indian Organizations and Indian-Owned Economic Enterprises.
    …yment will be made under the Indian Incentive Program. (2) The Contractor may request an adjustment under the Indian Incentive Program to the following: (i) The estimated cost of a cost-type contract. (ii) The target cost of a cost-plus-…
  • FAR 52.229-4 Federal, State, and Local Taxes (State and Local Adjustments).
    … 29.401-3, insert the following clause: Federal, State, and Local Taxes (State and Local Adjustments) (FEB 2013) (a) As used in this clause— After-imposed tax means any new or increased Federal, State, or local tax or duty, or tax that w…
  • FAR 12.207 Contract type.
    …gencies 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-and-materials contract or labor-hour contract (see Subpar…
  • FAR 15.407-1 Defective certified cost or pricing data.
    …a when negotiating the contract price. The price negotiation memorandum shall reflect the adjustments made to the data or the corrected data used to negotiate the contract price. (b)(1) If, after award, certified cost or pricing data are f…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …without adequate price competition or when prescribed by agency regulations. (g) Pension Adjustments and Asset Reversions. The contracting officer shall insert the clause at 52.215-15, Pension Adjustments and Asset Reversions, in solicitat…
  • FAR 16.203-1 Description.
    (a) A fixed-price contract with economic price adjustment provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies. Economic price adjustments are of three general types: (1) Adj…
  • FAR 30.605 Processing noncompliances.
    (a) General. Prior to making any contract price or cost adjustments under the applicable paragraph(s) addressing noncompliance at 52.230-2, 52.230-3, or 52.230-5, the CFAO shall determine that— (1) The contemplated contract price or cost a…
  • FAR 49.115 Settlement of terminated incentive contracts.
    …artial termination. Under a partial termination, the TCO shall limit the settlement to an adjustment of target fee as provided in paragraph (e) of the clause at 52.216-10, Incentive Fee. The settlement agreement shall include a reservation …
  • FAR 52.233-3 Protest After Award.
    …rotest, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if— (1) The stop-work or…
  • FAR 52.242-15 Stop-Work Order.
    …xpires, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if— (1) The stop-work or…
  • FAR 52.245-1 Government Property.
    …acting Officer shall, upon the Contractor's timely written request, consider an equitable adjustment to the contract. (ii) In the event property is received by the Contractor, or for Government-furnished property after receipt and installa…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    …o the Government. (l) The Contractor and Contracting Officer must agree to any equitable adjustment in fee for the continued portion of the contract when there is a partial termination. The Contracting Officer shall amend the contract to r…
  • DFARS 212.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
    …) Part 243—Contract Modifications. Use the clause at 252.243-7002, Requests for Equitable Adjustment, as prescribed in 243.205-71, to comply with 10 U.S.C. 3862. (xviii) Part 244—Subcontracting Policies and Procedures. Use the clause at 25…
  • FAR 16.402-1 Cost incentives.
    … incentive contracts include only cost incentives, which take the form of a profit or fee adjustment formula and are intended to motivate the contractor to effectively manage costs. No incentive contract may provide for other incentives wit…
  • FAR 30.604 Processing changes to disclosed or established cost accounting practices.
    …O determines the change is a desirable change, the CFAO shall negotiate any cost or price adjustments that may be needed to resolve the cost impact (see 30.606). (3) If the request is denied, the change is a unilateral change and shall be …
  • FAR 36.208 Concurrent performance of firm-fixed-price and other types of construction contracts.
    …-plus-fixed-fee, price-incentive, or other types of contracts with cost variation or cost adjustment features shall not be permitted concurrently, at the same work site, with firm-fixed-price, lump sum, or unit price contracts except with t…
  • FAR 49.502 Termination for convenience of the Government.
    …s termination settlement proposal (e.g., 6 months), and for requesting an equitable price adjustment (e.g., 45 days). (2) Research and development. The prime contractor may find the clause at 52.249-5, Termination for the Convenience of th…
  • FAR 52.243-1 Changes—Fixed-Price.
    …act, whether or not changed by the order, the Contracting Officer shall make an equitable adjustment in the contract price, the delivery schedule, or both, and shall modify the contract. (c) The Contractor must assert its right to an adjus…
  • FAR 52.248-1 Value Engineering.
    … as 75 percent for each VECP. 2 Same sharing arrangement as the contract's profit or fee adjustment formula. 3 The Contracting Officer may increase the Contractor's sharing rate to as high as 50 percent for each VECP. (g) Calculating net…
  • DFARS 242.7502 Policy.
    …ctive for profit or fee; or (v) Including a contract (reopener) clause that provides for adjustment of the contract amount after award. (3) The contracting officer who incorporates a reopener clause into the contract is responsible for ne…
  • DFARS 244.305-70 Policy.
    …tive for profit or fee; or (vi) Including a contract (reopener) clause that provides for adjustment of the contract amount after award. (3) The contracting officer who incorporates a reopener clause into the contract is responsible for ne…
  • FAR 46.407 Nonconforming supplies or services.
    …e, conditional acceptance, or rejection, with supporting rationale; and (v) The contract adjustment considered appropriate, including any adjustment offered by the contractor. (2) The cognizant contract administration office, or other Gov…
  • FAR 52.243-2 Changes—Cost-Reimbursement.
    …er terms and conditions of this contract, the Contracting Officer shall make an equitable adjustment in the (1) estimated cost, delivery or completion schedule, or both; (2) amount of any fixed fee; and (3) other affected terms and shall mo…
  • FAR 5.205 Special situations.
    …ed requirement (see 7.107-5(b)). (h) Notice regarding timely definitization of equitable adjustments for change orders under construction contracts. When the contracting officer anticipates award of a contract to a small business pursuant …
  • FAR 52.216-7 Allowable Cost and Payment.
    …the Contractor's indirect costs for payment purposes). (3) Notwithstanding the audit and adjustment of invoices or vouchers under paragraph (g) below, allowable indirect costs under this contract shall be obtained by applying indirect cost…
  • FAR 52.229-6 Taxes—Foreign Fixed-Price Contracts.
    … the Contracting Officer or to comply with the provisions of paragraph (i) below. (g) No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds $250. (h) If the Contractor obtains a re…
  • DFARS 237.7204 Format and clauses for educational service agreements.
    …al tuition and fee schedule, the Contractor may submit a supplemental invoice or make the adjustment on the next regular invoice under this agreement. The Contractor shall clearly identify and explain the supplemental invoice or the adjustm…
  • FAR 2.101 Definitions.
    …racting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract. However, a written demand or written assert…
  • FAR 3.104-7 Violations or possible violations.
    …tractual remedies, including profit recapture under the clause at 52.203-10, Price or Fee Adjustment for Illegal or Improper Activity, or, if the contract has been rescinded under paragraph (d)(2)(ii) of this subsection, recovery of the amo…

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.