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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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66 sections with “ceiling”: the first 40

  • FAR 16.206 Fixed-ceiling-price contracts with retroactive price redetermination.
  • DFARS 217.7404-2 Price ceiling.
    UCAs shall include a not-to-exceed price.
  • DFARS 243.204-70-2 Price ceiling.
    Unpriced change orders shall include a not-to-exceed price.
  • FAR 14.408-4 Economic price adjustment.
    …ion does not contain an economic price adjustment clause but a bidder proposes one with a ceiling that the price will not exceed, the bid shall be evaluated on the basis of the maximum possible economic price adjustment of the quoted base p…
  • FAR 16.403-1 Fixed-price incentive (firm target) contracts.
    …-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. The price ceiling is th…
  • FAR 17.106-1 General.
    …gram year subject to cancellation, the contracting officer shall establish a cancellation ceiling. Ceilings must exclude amounts for requirements included in prior program years. The contracting officer shall reduce the cancellation ceiling…
  • FAR 42.707 Cost-sharing rates and limitations on indirect cost rates.
    …s lower than the anticipated actual rates. In such cases, a negotiated indirect cost rate ceiling may be incorporated into the contract for prospective application. For cost sharing under research and development contracts, see 35.003(b). …
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …placement or correction, and if the replacement or correction can be performed within the ceiling price (or the ceiling price as increased by the Government), the Government may— (A) By contract or otherwise, perform the replacement or cor…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …he total cost to the Government for the performance of this contract shall not exceed the ceiling price set forth in the Schedule, and the Contractor agrees to use its best efforts to perform the work specified in the Schedule and all oblig…
  • 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 17.108 Congressional notification.
    …pt for DoD, NASA, and the Coast Guard, a multiyear contract which includes a cancellation ceiling in excess of $20 million may not be awarded until the head of the agency gives written notification of the proposed contract and of the propos…
  • FAR 30.606 Resolving cost impacts.
    …acting officers, increase or decrease individual contract prices, including contract cost ceilings or target costs on flexibly-priced contracts. In such cases, the CFAO shall limit any upward contract price adjustments on affected contracts…
  • DFARS 217.170 General.
    … similar sections in subsequent DoD appropriations acts); or (iv) Include a cancellation ceiling in excess of $200 million (see 10 U.S.C. 3531(d)(4) and 10 U.S.C. 3501(g)(1)). (2) A DoD component must submit a request for authority to ent…
  • FAR 16.206-1 Description.
    A fixed-ceiling-price contract with retroactive price redetermination provides for (a) a fixed ceiling price and (b) retroactive price redetermination within the ceiling after completion of the contract.
  • FAR 52.216-7 Allowable Cost and Payment.
    …y completed in this fiscal year (include contract number, period of performance, contract ceiling amounts, contract fee computations, level of effort, and indicate if the contract is ready to close). (iv) The following supplemental informa…
  • FAR 8.404 Use of Federal Supply Schedules.
    …raph (h)(3)(iii) of this section that a fixed-price order is not suitable; (B) Include a ceiling price in the order that the contractor exceeds at its own risk; and (C) When the total performance period, including options, is more than th…
  • FAR 12.207 Contract type.
    …cts), that no other contract type authorized by this subpart is suitable; (B) Includes a ceiling price in the contract or order that the contractor exceeds at its own risk; and (C) Prior to increasing the ceiling price of a time-and-mater…
  • FAR 16.201 General.
    …n adjustable price. Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price (including target cost), or both. Unless otherwise specified in the contract, the ceiling price or target price is subje…
  • FAR 16.205-2 Application.
    …bsequent pricing period should be at least 12 months. (b) The contract may provide for a ceiling price based on evaluation of the uncertainties involved in performance and their possible cost impact. This ceiling price should provide for a…
  • FAR 16.403 Fixed-price incentive contracts.
    …f total final negotiated cost to total target cost. The final price is subject to a price ceiling, negotiated at the outset. The two forms of fixed-price incentive contracts, firm target and successive targets, are further described in 16.4…
  • FAR 16.403-2 Fixed-price incentive (successive targets) contracts.
    …profit adjustment formula to be used for establishing the firm target profit, including a ceiling and floor for the firm target profit. (This formula normally provides for a lesser degree of contractor cost responsibility than would a formu…
  • FAR 16.601 Time-and-materials contracts.
    …od plus any option periods exceeds three years; and (2) The contract or order includes a ceiling price that the contractor exceeds at its own risk. Also see 12.207(b) for further limitations on use of time-and-materials or labor-hour contr…
  • FAR 17.106-2 Solicitations.
    …e shall consider only the first year. (d) A provision specifying a separate cancellation ceiling (on a percentage or dollar basis) and dates applicable to each program year subject to a cancellation (see 17.106-1 (c) and (d)). (e) A state…
  • FAR 17.106-3 Special procedures applicable to DoD, NASA, and the Coast Guard.
    …economic price adjustment, or fixed-price incentive. (e) Recurring costs in cancellation ceiling. The inclusion of recurring costs in cancellation ceilings is an exception to normal contract financing arrangements and requires approval by …
  • FAR 52.216-16 Incentive Price Revision—Firm Target.
    … clause; provided, that in no event shall the total final price of these items exceed the ceiling price of ___ dollars ($___). Any supplies or services that are to be (1) ordered separately under, or otherwise added to, this contract and (2…
  • FAR 52.216-17 Incentive Price Revision—Successive Targets.
    … clause; provided, that in no event shall the total final price of these items exceed the ceiling price of ___ dollars ($___). The prices of these items shown in the Schedule are the initial target prices, which include an initial target pr…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …d cost accumulations are the basis for increasing contract prices, target prices and cost ceilings; and (ii) Estimated decreased cost accumulations are the basis for decreasing contract prices, target prices and cost ceilings. (g) For any…
  • FAR 52.243-3 Changes—Time-and-Materials or Labor-Hours.
    …ished property. (b) If any change causes an increase or decrease in any hourly rate, the ceiling price, or the time required for performance of any part of the work under this contract, whether or not changed by the order, or otherwise aff…
  • FAR 52.246-6 Inspection—Time-and-Material and Labor-Hour.
    …placement or correction, and if the replacement or correction can be performed within the ceiling price (or the ceiling price as increased by the Government), the Government may— (i) By contract or otherwise, perform the replacement or cor…
  • FAR 52.248-1 Value Engineering.
    …ive instant contract savings shall be added to the target cost or to the target price and ceiling price, and the amount shall be offset against concurrent and future contract savings. (4) If the Government does not receive and accept all i…
  • DFARS 216.403-1 Fixed-price incentive (firm target) contracts.
    …roduction. (2) The contracting officer shall pay particular attention to share lines and ceiling prices for fixed-price incentive (firm target) contracts, with a 120 percent ceiling and a 50/50 share ratio as the point of departure for est…
  • DFARS 235.006 Contracting methods and contract type.
    …cuted, for any action that is— (1) An increase of more than $250 million in the price or ceiling price of a fixed-price type development contract, or a fixed-price type contract for the lead ship of a class; (2) A reduction in the amount …
  • FAR 1.108 FAR conventions.
    …on establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alterna…
  • FAR 16.301-1 Description.
    …stablish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the contracting officer.
  • FAR 16.402-1 Cost incentives.
    …it or fee, and a profit or fee adjustment formula that (within the constraints of a price ceiling or minimum and maximum fee) provides that— (1) Actual cost that meets the target will result in the target profit or fee; (2) Actual cost th…
  • FAR 16.603-2 Application.
    …ard is based on price competition, the contracting officer shall include an overall price ceiling in the letter contract. (c) Each letter contract shall, as required by the clause at 52.216-25, Contract Definitization, contain a negotiated…
  • FAR 16.703 Basic ordering agreements.
    …sic ordering agreement until prices have been established, unless the order establishes a ceiling price limiting the Government's obligation and either— (i) The basic ordering agreement provides adequate procedures for timely pricing of th…
  • FAR 17.103 Definitions.
    …s are available for performance of the succeeding program year requirement. Cancellation ceiling means the maximum cancellation charge that the contractor can receive in the event of cancellation. Cancellation charge means the amount of u…
  • FAR 31.204 Application of principles and procedures.
    …eterminable (i.e., fixed-price contracts with prospective price redetermination and fixed-ceiling-price contracts with retroactive price redetermination). (2) The requirements of paragraph (b)(1) of this section apply to any tier above the…
  • FAR 32.501-3 Contract price.
    … the target price, the contracting officer may provisionally increase the price up to the ceiling or maximum price. (4) Under a letter contract, the contract price is the maximum amount obligated by the contract as modified. (5) Under an …

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.