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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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25 sections with “award-fee contract”

  • DFARS 216.405-2 Cost-plus-award-fee contracts.
    (1) Award-fee pool. The award-fee pool is the total available award fee for each evaluation period for the life of the contract. The contracting officer shall perform an analysis of appropriate fee distribution to ensure at least 40 percent…
  • FAR 16.305 Cost-plus-award-fee contracts.
    A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (a) a base amount (which may be zero) fixed at inception of the contract and (b) an award amount, based upon a judgmental evaluation by th…
  • FAR 16.405-2 Cost-plus-award-fee contracts.
    A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (1) a base amount fixed at inception of the contract, if applicable and at the discretion of the contracting officer, and (2) an award amo…
  • DFARS 215.404-74 Fee requirements for cost-plus-award-fee contracts.
    In developing a fee objective for cost-plus-award-fee contracts, the contracting officer shall— (a) Follow the guidance in FAR 16.405-2 and 216.405-2; (b) Not use the weighted guidelines method or alternate structured approach; (c) Apply…
  • FAR 16.406 Contract clauses.
    …ion in solicitations and contracts when a cost-plus-incentive-fee contract or a cost-plus-award-fee contract is contemplated. (d) The clause at 52.216-10, Incentive Fee, is prescribed in 16.307(d) for insertion in solicitations and contrac…
  • FAR 16.401 General.
    …signed by the head of the contracting activity, shall be completed for all incentive- and award-fee contracts justifying that the use of this type of contract is in the best interest of the Government. This determination shall be documented…
  • FAR 19.708 Contract clauses.
    …rom a fully quantified schedule of payments based on actual subcontract achievement to an award-fee approach employing subjective evaluation criteria (see paragraph (c)(3) of this section). The incentive should not reward the contractor for…
  • DFARS 216.401 General.
    …Practice. (d) The determination and findings justifying that the use of an incentive- or award-fee contract is in the best interest of the Government, may be signed by the head of contracting activity or a designee— (i) No lower than one …
  • FAR 52.225-26 Contractors Performing Private Security Functions Outside the United States.
    …ny responsibility determination or evaluation of past performance; and (3) If this is an award-fee contract, the Contractor's failure to comply with the requirements of this clause shall be considered in the evaluation of the Contractor's …
  • DFARS 216.401-71 Objective criteria.
    …type is a multiple-incentive contract containing both objective incentives and subjective award-fee criteria (i.e., cost-plus-incentive-fee/award-fee or fixed-price-incentive/award-fee). (3) See PGI 216.401(e) for guidance on the use of aw…
  • DFARS 252.225-7039 Defense Contractors Performing Private Security Functions Outside the United States.
    …ny responsibility determination or evaluation of past performance; and (3) If this is an award-fee contract, the Contractor's failure to comply with the requirements of this clause shall be considered in the evaluation of the Contractor's …
  • FAR 16.001 Definitions.
    As used in this part— Award-Fee Board means the team of individuals identified in the award-fee plan who have been designated to assist the Fee-Determining Official in making award-fee determinations. Established price means a price that—…
  • FAR 16.404 Fixed-price contracts with award fees.
    Award-fee provisions may be used in fixed-price contracts when the Government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively. Such contracts shall establish …
  • DFARS 216.406 Contract clauses.
    …e Health or Safety of Government Personnel, in all solicitations and contracts containing award-fee provisions.
  • FAR 16.402-1 Cost incentives.
    …other incentives without also providing a cost incentive (or constraint). (b) Except for award-fee contracts (see 16.404 and 16.401 (e)), incentive contracts include a target cost, a target profit or fee, and a profit or fee adjustment for…
  • FAR 19.705-1 General.
    …viding monetary incentives such as payments based on actual subcontracting achievement or award-fee contracting (see the clause at 52.219-10, Incentive Subcontracting Program, and 19.708(c)). When using any contractual incentive provision b…
  • FAR 25.302-5 Remedies.
    …y responsibility determination or evaluation of past performance; and (3) In the case of award-fee contracts, the contracting officer shall consider a contractor's failure to comply with the requirements of this subsection in the evaluatio…
  • FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity.
    …withstanding any minimum fee or “fee floor” specified in the contract. (3) For cost-plus-award-fee contracts— (i) The base fee established in the contract at the time of contract award; (ii) If no base fee is specified in the contract, 3…
  • DFARS 215.404-4 Profit.
    …ted contract action when certified cost or pricing data is obtained, except for cost-plus-award-fee contracts (see 215.404-74, 216.405-2, and FAR 16.405-2) or contracts with Federally Funded Research and Development Centers (FFRDCs) (see 21…
  • DFARS 252.246-7001 Warranty of data.
    …) Seventy-five percent of the total subcontract fee in a cost-plus-fixed-fee or cost-plus-award-fee subcontract; or (C) Seventy-five percent of the total subcontract target profit or fee in a fixed-price-incentive or cost-plus-incentive su…
  • FAR 16.202-1 Description.
    …rties. The contracting officer may use a firm-fixed-price contract in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on…
  • FAR 16.203-1 Description.
    …icer may use a fixed-price contract with economic price adjustment in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on…
  • DFARS 216.301-3 Limitations.
    …family housing project, contracting officers shall not use cost-plus-fixed-fee, cost-plus-award-fee, or cost-plus-incentive-fee contract types (10 U.S.C. 3323). This applies notwithstanding a declaration of war or the declaration by the Pre…
  • DFARS 216.405-2-70 Award fee reduction or denial for jeopardizing the health or safety of Government personnel.
    …t Personnel. (b) The contracting officer shall include in the evaluation criteria of any award-fee plan, a review of contractor and subcontractor actions that jeopardized the health or safety of Government personnel, through gross negligen…
  • DFARS 216.405-2-71 Award fee reduction or denial for failure to comply with requirements relating to performance of private security functions.
    …zation Act for Fiscal Year 2008, as amended, the contracting officer shall include in any award-fee plan a requirement to review contractor compliance with, or violation of, applicable requirements of the contract with regard to the perform…

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.