SpendQueryBeta

48 CFR · Federal Acquisition Regulation and Defense supplement

FAR and DFARS navigator

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.

Ask the FAR

Try: · · ·

Clear

30 sections with “cost sharing”

  • FAR 42.707 Cost-sharing rates and limitations on indirect cost rates.
    (a) Cost-sharing arrangements, when authorized, may call for the contractor to participate in the costs of the contract by accepting indirect cost rates lower than the anticipated actual rates. In such cases, a negotiated indirect cost rate…
  • FAR 16.303 Cost-sharing contracts.
    (a) Description. A cost-sharing contract is a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs. (b) Application. A cost-sharing contract may be use…
  • FAR 52.216-12 Cost-Sharing Contract—No Fee.
    …rescribed in 16.307(f), insert the following clause in solicitations and contracts when a cost-sharing contract is contemplated. This clause may be modified by substituting $10,000 in lieu of $100,000 as the maximum reserve in paragraph (b)…
  • FAR 48.104-4 Sharing alternative—no-cost settlement method.
    …in the Government's best interest. Contracting officers should balance the administrative costs of negotiating a settlement against the anticipated savings. A no-cost settlement may be used if, in the contracting officer's judgment, relianc…
  • 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 52.216-7 Allowable Cost and Payment.
    As prescribed in 16.307(a), insert the following clause: Allowable Cost and Payment (AUG 2018) (a) Invoicing. (1) The Government will make payments to the Contractor when requested as work progresses, but (except for small business concer…
  • FAR 52.216-11 Cost Contract—No Fee.
    …rescribed in 16.307(e), insert the following clause in solicitations and contracts when a cost-reimbursement contract is contemplated that provides no fee and is not a cost-sharing contract. This clause may be modified by substituting $10,0…
  • FAR 52.232-20 Limitation of Cost.
    …ay be substituted for “Schedule” wherever that word appears in the clause: Limitation of Cost (APR 1984) (a) The parties estimate that performance of this contract, exclusive of any fee, will not cost the Government more than (1) the esti…
  • FAR 2.101 Definitions.
    … comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost. It includes developing the overall strategy for managing the acquisition. Activity Address Code (AAC) means a distinct six-position code consis…
  • FAR 48.104-3 Sharing 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)). (b) The contractor's share of collateral …
  • FAR 15.407-2 Make-or-buy programs.
    …anning, placing, and administering subcontracts as necessary to ensure the lowest overall cost and technical risk to the Government. When make-or-buy programs are required, the Government may reserve the right to review and agree on the con…
  • FAR 16.307 Contract clauses.
    (a)(1) The contracting officer shall insert the clause at 52.216-7, Allowable Cost and Payment, in solicitations and contracts when a cost-reimbursement contract or a time-and-materials contract (other than a contract for a commercial produ…
  • FAR 16.401 General.
    …ontract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery or technical performance, by relating the amount of profit or fee payable under the contract t…
  • FAR 27.408 Cosponsored research and development activities.
    … require the contractor to make substantial contributions of funds or resources (e.g., by cost-sharing or by repayment of nonrecurring costs), and the contractor's and the Government's respective contributions to any item, component, proces…
  • FAR 31.205-6 Compensation for personal services.
    …e following general criteria and additional requirements contained in other parts of this cost principle: (1) Compensation for personal services must be for work performed by the employee in the current year and must not represent a retroa…
  • FAR 32.503-6 Suspension or reduction of payments.
    … the following actions, as necessary, to avoid or correct overpayment: (1) Eliminate the costs of the excessive inventory from the costs eligible for progress payments, with appropriate reduction in progress payments outstanding. (2) Appl…
  • FAR 41.301 Requirements.
    …on. (5) Identification of all available sources or methods of supply, an analysis of the cost effectiveness of each, and a statement of the ability of each source to provide the required services, including the location and a description o…
  • 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 52.232-22 Limitation of Funds.
    … of Funds (APR 1984) (a) The parties estimate that performance of this contract will not cost the Government more than (1) the estimated cost specified in the Schedule or, (2) if this is a cost-sharing contract, the Government's share of t…
  • 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 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 241.202 Procedures.
    …nd service charges. The Government may pay a connection charge when required to cover the cost of the necessary connecting facilities. A connection charge based on the estimated labor cost of installing and removing the facility shall not i…
  • FAR 35.003 Policy.
    …tion is to stimulate or support research and development for another public purpose. (b) Cost sharing. Cost sharing policies (which are not otherwise required by law) under Government contracts shall be in accordance with 16.303, 42.707(a)…
  • FAR 48.101 General.
    … functions or characteristics, anything that increases acquisition, operation, or support costs. (b) There are two value engineering approaches: (1) The first is an incentive approach in which contractor participation is voluntary and the…
  • FAR 48.102 Policies.
    (a) As required by 41 U.S.C. 1711, agencies shall establish and maintain cost-effective value engineering procedures and processes. Agencies shall provide contractors a substantial financial incentive to develop and submit VECP's. Contracti…
  • FAR 31.205-23 Losses on other contracts.
    An excess of costs over income under any other contract (including the contractor's contributed portion under cost-sharing contracts) is unallowable.
  • FAR 48.201 Clauses for supply or service contracts.
    …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 cost of computing and tracking collat…
  • FAR 4.602 General.
    …ency data on sustainable acquisition, including types of products purchased, the purchase costs, and the exceptions used for other than sustainable acquisition; and (4) A means of measuring and assessing the effect of other policy and mana…
  • FAR 16.206-2 Application.
    …ble as the circumstances permit. (c) Since this contract type provides the contractor no cost control incentive except the ceiling price, the contracting officer should make clear to the contractor during discussion before award that the c…
  • FAR 48.103 Processing value engineering change proposals.
    …nment: (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 Engineering…

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.