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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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133 sections with “contract cost risk”: the first 40

  • FAR 16.306 Cost-plus-fixed-fee contracts.
    (a) Description. A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, b…
  • FAR 49.603-3 Cost-reimbursement contracts—complete termination, if settlement includes cost.
    [Insert the following in Block 14 of SF 30 for settlement of cost-reimbursement contracts that are completely terminated, if settlement includes costs.] (a) This supplemental agreement settles the settlement proposal resulting from the Not…
  • FAR 49.603-4 Cost-reimbursement contracts—complete termination, with settlement limited to fee.
    [Insert the following in Block 14 of SF 30 for settlement of cost-reimbursement contracts that are completely terminated, if settlement is limited to fee.] (a) This supplemental agreement settles the amount of fee due under the contract, t…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    (a) Description. The contract type risk factor focuses on the degree 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.…
  • FAR 9.305 Risk.
    …terials or components, or commencement of production, is normally at the sole risk of the contractor. To minimize this risk, the contracting officer shall provide sufficient time in the delivery schedule for acquisition of materials and com…
  • FAR 12.207 Contract type.
    … 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-an…
  • FAR 16.103 Negotiating contract type.
    (a) Selecting the contract type is generally a matter for negotiation and requires the exercise of sound judgment. Negotiating the contract type and negotiating prices are closely related and should be considered together. The objective is …
  • FAR 16.104 Factors in selecting contract types.
    There are many factors that the contracting officer should consider in selecting and negotiating the contract type. They include the following: (a) Price competition. Normally, effective price competition results in realistic pricing, and …
  • 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 16.403-1 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 16.601 Time-and-materials contracts.
    (a) Definitions for the purposes of Time-and-Materials Contracts. Direct materials means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product o…
  • FAR 31.201-6 Accounting for unallowable costs.
    …e identified and excluded from any billing, claim, or proposal applicable to a Government contract. A directly associated cost is any cost that is generated solely as a result of incurring another cost, and that would not have been incurred…
  • FAR 31.205-18 Independent research and development and bid and proposal costs.
    …g bids and proposals (whether or not solicited) on potential Government or non-Government contracts. The term does not include the costs of effort sponsored by a grant or cooperative agreement, or required in the performance of a contract. …
  • FAR 32.503-16 Risk of loss.
    (a) Under the Progress Payments clause, and except for normal spoilage, the contractor bears the risk of loss for Government property under the clause, even though title is vested in the Government, unless the Government has expressly assum…
  • FAR 32.704 Limitation of cost or funds.
    (a)(1) When a contract contains the clause at 52.232-20, Limitation of Cost; or 52.232-22, Limitation of Funds, the contracting officer, upon learning that the contractor is approaching the estimated cost of the contract or the limit of the…
  • FAR 35.006 Contracting methods and contract type.
    … not available, thus making negotiation necessary. However, the use of negotiation in R&D contracting does not change the obligation to comply with part 6. (b) Selecting the appropriate contract type is the responsibility of the contractin…
  • FAR 39.102 Management of risk.
    (a) Prior to entering into a contract for information technology, an agency should analyze risks, benefits, and costs. (See part 7 for additional information regarding requirements definition.) Reasonable risk taking is appropriate as long …
  • FAR 42.202 Assignment of contract administration.
    (a) Delegating functions. As provided in agency procedures, contracting officers may delegate contract administration or specialized support services, either through interagency agreements or by direct request to the cognizant CAO listed in…
  • FAR 47.303-17 Contractor-prepaid commercial bills of lading, small package shipments.
    (a) If it is advantageous to the Government, the contracting officer may authorize the contractor to ship supplies, which have been acquired f.o.b. origin, to domestic destinations, including DOD air and water terminals, by common carriers …
  • 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 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 __________________. …
  • FAR 50.104-3 Special procedures for unusually hazardous or nuclear risks.
    (a) Indemnification requests. (1) Contractor requests for the indemnification clause to cover unusually hazardous or nuclear risks should be submitted to the contracting officer and shall include the following information: (i) Identificati…
  • FAR 50.104-4 Contract clause.
    The contracting officer shall insert the clause at 52.250-1, Indemnification Under Public Law 85-804, in contracts whenever the approving official determines that the contractor shall be indemnified against unusually hazardous or nuclear ri…
  • FAR 52.209-3 First Article Approval—Contractor Testing.
    …s prescribed in 9.308-1 (a) and (b), insert the following clause: First Article Approval—Contractor Testing (SEP 1989) [Contracting Officer shall insert details] (a) The Contractor shall test __ unit(s) of Lot/Item __ as specified in thi…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    As prescribed in 12.301(b)(3), insert the following clause: Contract Terms and Conditions—Commercial Products and Commercial Services (NOV 2023) (a) Inspection/Acceptance. The Contractor shall only tender for acceptance those items that c…
  • DFARS 212.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
    …7301. (f) The following additional provisions and clauses apply to DoD solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services. If the offeror has completed any of the fol…
  • DFARS 215.403-3 Requiring data other than certified cost or pricing data.
    Follow the procedures at PGI 215.403-3. (a) In accordance with 10 U.S.C. 2306a(d)— (1) Contracting officers shall not determine the price of a contract or subcontract to be fair and reasonable based solely on historical prices paid by the…
  • DFARS 215.404-71-2 Performance risk.
    (a) Description. This profit factor addresses the contractor's degree of risk in fulfilling the contract requirements. The factor consists of two parts: (1) Technical—the technical uncertainties of performance. (2) Management/cost control…
  • DFARS 217.172 Multiyear contracts for supplies.
    (a) This section applies to all multiyear contracts for supplies, including weapon systems and other multiyear acquisitions specifically authorized by law (10 U.S.C. 3501). (b) The head of the agency may enter into a multiyear contract for…
  • DFARS 232.704-70 Incrementally funded fixed-price contracts.
    (a) Upon receipt of the contractor's notice under paragraph (c) of the clause at 252.232-7007, Limitation of Government's Obligation, the contracting officer shall promptly provide written notice to the contractor that the Government is— (…
  • DFARS 249.501-70 Special termination costs.
    …clause at 252.249-7000, Special Termination Costs, may be used in an incrementally funded contract when its use is approved by the agency head. (b) The clause is authorized when— (1) The contract term is 2 years or more; (2) The contract…
  • DFARS 252.225-7040 Contractor Personnel Supporting U.S. Armed Forces Deployed Outside the United States.
    As prescribed in 225.371-5(a), use the following clause: Contractor Personnel Supporting U.S. Armed Forces Deployed Outside the United States (Aug 2025) (a) Definitions. As used in this clause— Combatant Commander means the commander of …
  • DFARS 252.228-7001 Ground and Flight Risk.
    …a) Definitions. As used in this clause— Aircraft means, unless otherwise provided in the contract Schedule, any item, other than a rocket or missile, intended for flight (e.g., fixed-winged aircraft, blended wing/lifting bodies, helicopter…
  • DFARS 252.235-7001 Indemnification Under 10 U.S.C. 3861—Cost Reimbursement.
    …ment (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 clause. (b) Claims, losses, and damages covered— (1) Claims by third persons for death, bodily…
  • DFARS 252.246-7007 Contractor Counterfeit Electronic Part Detection and Avoidance System.
    As prescribed in 246.870-3(a), use the following clause: Contractor Counterfeit Electronic Part Detection and Avoidance System (JAN 2023) The following paragraphs (a) through (e) of this clause do not apply unless the Contractor is subjec…
  • FAR 15.404-4 Profit.
    …. (1) Profit or fee prenegotiation objectives do not necessarily represent net income to contractors. Rather, they represent that element of the potential total remuneration that contractors may receive for contract performance over and ab…
  • FAR 31.205-39 Service and warranty costs.
    Service and warranty costs include those arising from fulfillment of any contractual obligation of a contractor to provide services such as installation, training, correcting defects in the products, replacing defective parts, and making re…
  • FAR 1.102-2 Performance standards.
    …e into account the perspective of the user of the product or service. (3) When selecting contractors to provide products or perform services the Government will use contractors who have a track record of successful past performance or who …
  • FAR 2.101 Definitions.
    … or term when used in that part, subpart, or section. Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lea…
  • FAR 5.102 Availability of solicitations.
    (a)(1) Except as provided in paragraph (a)(5) of this section, the contracting officer must make available through the GPE solicitations synopsized through the GPE, including specifications, technical data, and other pertinent information d…

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.