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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10 sections with “collateral savings”

  • FAR 48.104-3 Sharing collateral savings.
    (a) The Government shares collateral savings with the contractor, unless the head of the contracting activity has determined that the cost of calculating and tracking collateral savings will exceed the benefits to be derived (see 48.201(e))…
  • FAR 48.104-2 Sharing acquisition savings.
    …entive contracts, the contractor's share of concurrent and future contract savings and of collateral savings shall be paid as a separate firm-fixed-price line item on the instant contract. (5) Within 3 months after concurrent contracts hav…
  • FAR 52.248-1 Value Engineering.
    … additional orders, and funding of subsequent year requirements on a multiyear contract. Collateral costs, as used in this clause, means agency cost of operation, maintenance, logistic support, or Government-furnished property. Collateral…
  • FAR 52.248-3 Value Engineering—Construction.
    … realized from accepted VECP's, in accordance with paragraph (f) below. (b) Definitions. Collateral costs, as used in this clause, means agency costs of operation, maintenance, logistic support, or Government-furnished property. Collatera…
  • FAR 48.001 Definitions.
    … additional orders, and funding of subsequent year requirements on a multiyear contract. Collateral costs means agency costs of operation, maintenance logistic support, or Government-furnished property. Collateral savings means those meas…
  • FAR 48.103 Processing value engineering change proposals.
    …f the Government: (1) The decision to accept or reject a VECP. (2) The determination of collateral costs or collateral savings. (3) The decision as to which of the sharing rates applies when Alternate II of the clause at 52.248-1, Value …
  • FAR 48.201 Clauses for supply or service contracts.
    …fied areas and a value engineering incentive to the remaining areas of the contract. (e) Collateral savings computation not cost-effective. If the head of the contracting activity determines for a contract or class of contracts that the co…
  • FAR 48.102 Policies.
    … Agencies shall establish procedures for funding and payment of the contractor's share of collateral savings and future contract savings.
  • FAR 48.104-4 Sharing alternative—no-cost settlement method.
    …oncurrent contracts placed with other sources, savings from all future contracts, and all collateral savings. Use of this method must be by mutual agreement of both parties for individual VECPs.
  • FAR 48.202 Clause for construction contracts.
    …f the head of the contracting activity determines that the cost of computing and tracking collateral savings for a contract will exceed the benefits to be derived, the contracting officer shall use the clause with its Alternate I.

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.