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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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22 sections with “cost reductions”

  • DFARS 215.404-71-5 Cost efficiency factor.
    (a) This special factor provides an incentive for contractors to reduce costs. To the extent that the contractor can demonstrate cost reduction efforts that benefit the pending contract, the contracting officer may increase the prenegotiati…
  • DFARS 231.205-70 External restructuring costs.
    …n— (1) Prescribes policies and procedures for allowing contractor external restructuring costs when savings would result for DoD; and (2) Implements 10 U.S.C. 3761. (b) Definitions. As used in this section: (1) Business combination mean…
  • 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…
  • FAR 32.601 General.
    …etermination or for determination of prices under incentive type contracts. (2) Price or cost reductions for defective certified cost or pricing data. (3) Financing payments determined to be in excess of the contract limitations at 52.232…
  • FAR 48.001 Definitions.
    …e same unit. Acquisition savings include— (1) Instant contract savings, that are the net cost reductions on the contract under which the VECP is submitted and accepted, and that are equal to the instant unit cost reduction multiplied by th…
  • FAR 52.248-1 Value Engineering.
    … same unit. Acquisition savings include— (1) Instant contract savings, which are the net cost reductions on this, the instant contract, and which are equal to the instant unit cost reduction multiplied by the number of instant contract uni…
  • FAR 15.402 Pricing policy.
    …easonableness of the offered prices, the contracting officer— (1) Shall obtain certified cost or pricing data when required by 15.403-4, along with data other than certified cost or pricing data as necessary to establish a fair and reasona…
  • FAR 15.404-1 Proposal analysis techniques.
    …evel of detail of the analysis required. (2) Price analysis shall be used when certified cost or pricing data are not required (see paragraph (b) of this subsection and 15.404-3). (3) Cost analysis shall be used to evaluate the reasonable…
  • FAR 48.104-2 Sharing acquisition savings.
    …result when the total of acquisition savings becomes greater than the total of Government costs and any negative instant contract savings. This may occur on the instant contract or it may not occur until reductions have been negotiated on c…
  • FAR 52.216-5 Price Redetermination—Prospective.
    …d under this contract exceed any ceiling price included in the contract. (b) Definition. Costs, as used in this clause, means allowable costs in accordance with part 31 of the Federal Acquisition Regulation (FAR) in effect on the date of t…
  • FAR 52.216-16 Incentive Price Revision—Firm Target.
    …s clause shall be identified as such in a modification to this contract. (b) Definition. Costs, as used in this clause, means allowable costs in accordance with part 31 of the Federal Acquisition Regulation (FAR) in effect on the date of t…
  • FAR 52.216-17 Incentive Price Revision—Successive Targets.
    …l target profit of ___ [Contracting Officer insert percent] percent of the initial target cost. Any supplies or services that are to be (1) ordered separately under, or otherwise added to, this contract and (2) subject to price revision in …
  • FAR 52.232-12 Advance Payments.
    …ds from the special account only to pay for properly allocable, allowable, and reasonable costs for direct materials, direct labor, and indirect costs. Other withdrawals require approval in writing by the administering office. Determination…
  • FAR 52.248-3 Value Engineering—Construction.
    …rom 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. Collateral savings, …
  • DFARS 215.404-73 Alternate structured approaches.
    … to complete Blocks 21 through 30 of the DD Form 1547. (2) Offset for facilities capital cost of money. (i) The contracting officer shall reduce the overall prenegotiation profit objective by the amount of facilities capital cost of money…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    … its proposal. (3) The Contractor certifies that all items of termination inventory, the costs of which were used in arriving at the amount of this settlement or the settlement of any subcontract settlement proposal included in this settle…
  • DFARS 207.7002 Authority to acquire additional quantities of end items.
    …ty of the end item without additional funding because of production efficiencies or other cost reductions; (c) The amount of funds used for the acquisition of the higher quantity of the end item will not exceed the amount provided under th…
  • FAR 49.603-2 Fixed-price contracts—partial termination.
    … its proposal. (4) The Contractor certifies that all items of termination inventory, the costs of which were used in arriving at the amount of this settlement or the settlement of any subcontract settlement proposal included in this settle…
  • FAR 8.405-3 Blanket purchase agreements (BPAs).
    … to periodically compare multiple technical approaches or prices; (C) The administrative costs of BPAs; and (D) The technical qualifications of the schedule contractor(s). (4) BPAs shall address the frequency of ordering, invoicing, disc…
  • FAR 47.305 Solicitation provisions, contract clauses, and transportation factors.
    …extent feasible, activities shall schedule deliveries to effect savings in transportation costs, and concomitant reductions in energy consumption by carriers (see 47.305-7 and 47.305-8 for specific possibilities).
  • DFARS 252.251-7000 Ordering from Government supply sources.
    …e terms of the contract, and the Contractor shall be solely responsible for any increased costs. (d) When placing orders for Government stock on a non-reimbursable basis, the Contractor shall— (1) Comply with the requirements of the Contr…

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.