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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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62 sections with “contract type risk”: the first 40

  • 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 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 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…
  • DFARS 235.006 Contracting methods and contract type.
    …n authority of an intent not to exercise a fixed-price production option on a development contract for a major weapon system reasonably in advance of the expiration of the option exercise period. (ii) For other than major defense acquisiti…
  • 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 16.306 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 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 28.306 Insurance under fixed-price contracts.
    (a) General. Although the Government is not ordinarily concerned with the contractor's insurance coverage if the contract is a fixed-price contract, in special circumstances agencies may specify insurance requirements under fixed-price cont…
  • 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 39.103 Modular contracting.
    (a) This section implements 41 U.S.C. 2308. Modular contracting is intended to reduce program risk and to incentivize contractor performance while meeting the Governments need for timely access to rapidly changing technology. Consistent wit…
  • 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…
  • 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 215.404-71-2 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 237.172 Service contracts surveillance.
    …the preparation of the statement of work or statement of objectives for solicitations and contracts for services. These plans should be tailored to address the performance risks inherent in the specific contract type and the work effort add…
  • DFARS 215.404-71-1 General.
    …he weighted guidelines method focuses on four profit factors— (1) Performance risk; (2) Contract type risk; (3) Facilities capital employed; and (4) Cost efficiency. (b) The contracting officer assigns values to each profit factor; the…
  • DFARS 215.404-73 Alternate structured approaches.
    (a) The contracting officer may use an alternate structured approach under 215.404-4(c). (b) The contracting officer may design the structure of the alternate, but it shall include— (1) Consideration of the three basic components of profi…
  • 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 4.2304 Procedures.
    …CSA orders. The applicability of FASCSA orders to a particular acquisition depends on the contracting office's agency, the scope of the FASCSA order, the funding, and whether the requirement involves certain types of information systems (se…
  • FAR 7.103 Agency-head responsibilities.
    … (d) Ensuring that acquisition planners document the file to support the selection of the contract type in accordance with subpart 16.1. (e) Establishing criteria and thresholds at which increasingly greater detail and formality in the pla…
  • FAR 7.105 Contents of written acquisition plans.
    …ection, together with the agency's implementing procedures. Acquisition plans for service contracts or orders must describe the strategies for implementing performance-based acquisition methods or must provide rationale for not using those …
  • FAR 8.404 Use of Federal Supply Schedules.
    …9.202-1(e)(1)(iii))do not apply to BPAs or orders placed against Federal Supply Schedules contracts (but see 8.405-5). BPAs and orders placed against a MAS, using the procedures in this subpart, are considered to be issued using full and op…
  • FAR 10.002 Procedures.
    … on such factors as urgency, estimated dollar value, complexity, and past experience. The contracting officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still curr…
  • FAR 15.305 Proposal evaluation.
    …ion is an assessment of the proposal and the offeror's ability to perform the prospective contract successfully. An agency shall evaluate competitive proposals and then assess their relative qualities solely on the factors and subfactors sp…
  • FAR 15.404-1 Proposal analysis techniques.
    …sal analysis is to ensure that the final agreed-to price is fair and reasonable. (1) The contracting officer is responsible for evaluating the reasonableness of the offered prices. The analytical techniques and procedures described in this…
  • 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 15.405 Price negotiation.
    …f performing cost or price analysis is to develop a negotiation position that permits the contracting officer and the offeror an opportunity to reach agreement on a fair and reasonable price. A fair and reasonable price does not require tha…
  • FAR 15.407-2 Make-or-buy programs.
    (a) General. The prime contractor is responsible for managing contract performance, including planning, placing, and administering subcontracts as necessary to ensure the lowest overall cost and technical risk to the Government. When make-o…
  • FAR 16.202-1 Description.
    A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsi…
  • 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 16.301-1 Description.
    Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceil…
  • FAR 16.401 General.
    (a) Incentive contracts as described in this subpart are appropriate when a firm-fixed-price contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery …
  • FAR 17.106-1 General.
    (a) Method of contracting. The nature of the requirement should govern the selection of the method of contracting, since the multiyear procedure is compatible with sealed bidding, including two-step sealed bidding, and negotiation. (b) Typ…
  • FAR 19.811-1 Sole source.
    (a) The contract to be awarded by the agency to the SBA shall be prepared in accordance with agency procedures and in the same detail as would be required in a contract with a business concern. The contracting officer shall use the Standard…
  • FAR 28.308 Self-insurance.
    …ated that 50 percent or more of the self-insurance costs to be incurred at a segment of a contractor's business will be allocable to negotiated Government contracts, and the self-insurance costs at the segment for the contractor's fiscal ye…
  • FAR 30.201-5 Waiver.
    (a) The head of the agency— (1) May waive the applicability of CAS for a particular contract or subcontract under the conditions listed in paragraph (b) of this subsection; and (2) Must not delegate this waiver authority to any official i…
  • FAR 31.001 Definitions.
    … form and whether paid immediately or deferred, for services rendered by employees to the contractor. Cost input means the cost, except general and administrative (G&A) expenses, which for contract costing purposes is allocable to the prod…

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.