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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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60 sections with “cost-reimbursement type contracts”: the first 40

  • FAR 28.307 Insurance under cost-reimbursement contracts.
    Cost-reimbursement contracts (and subcontracts, if the terms of the prime contract are extended to the subcontract) ordinarily require the types of insurance listed in 28.307-2, with the minimum amounts of liability indicated. (See 28.308 f…
  • FAR 35.006 Contracting methods and contract type.
    …e in cost estimates) normally precludes using fixed-price contracting for R&D, the use of cost-reimbursement contracts is usually appropriate (see subpart 16.3). The nature of development work often requires a cost-reimbursement completion …
  • FAR 53.249 Termination of contracts.
    …Total Cost Basis). (See 49.602-1(b).) (4) SF 1437 (Rev. 9/1997), Settlement Proposal for Cost-Reimbursement Type Contracts. (See 49.602-1(c) and 49.302.) (5) SF 1438 (Rev. 5/2004), Settlement Proposal (Short Form). (See 49.602-1(d).) (6)…
  • FAR 16.103 Negotiating contract type.
    … used at the outset. In particular, contracting officers should avoid protracted use of a cost-reimbursement or time-and-materials contract after experience provides a basis for firmer pricing. (d)(1) Each contract file shall include docum…
  • FAR 16.405-1 Cost-plus-incentive-fee contracts.
    (a) Description. The cost-plus-incentive-fee contract is a cost-reimbursement contract that provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs…
  • FAR 52.244-2 Subcontracts.
    …asing system, consent to subcontract is required for any subcontract that— (1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or (2) Is fixed-price and exceeds— (i) For a contract awarded by the Department of Defen…
  • DFARS 216.601 Time-and-materials contracts.
    … any reasonable degree of certainty; (3) Address why a cost-plus-fixed-fee term or other cost-reimbursement, incentive, or fixed-price contract or order is not appropriate; for contracts (including indefinite-delivery contracts) and orders…
  • DFARS 228.307-1 Group insurance plans.
    The Defense Department Group Term Insurance Plan is available for contractor use under cost-reimbursement type contracts when approved as provided in department or agency regulations. A contractor is eligible if— (a) The number of covered …
  • DFARS 234.004 Acquisition strategy.
    …roceeding with Milestone B approval despite the high level of program risk; and (C) If a cost-reimbursement type contract is selected, the contract file shall include the milestone decision authority's written determination that— (1) The …
  • FAR 16.104 Factors in selecting contract types.
    …he contract type requires price revision while performance is in progress; or (2) When a cost-reimbursement contract is being considered and all current or past experience with the contractor has been on a fixed-price basis. See 42.302(a)(…
  • 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 16.401 General.
    …es of incentive contracts are fixed-price incentive contracts (see 16.403 and 16.404) and cost-reimbursement incentive contracts (see 16.405). Since it is usually to the Government's advantage for the contractor to assume substantial cost r…
  • FAR 16.405-2 Cost-plus-award-fee contracts.
    A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (1) a base amount fixed at inception of the contract, if applicable and at the discretion of the contracting officer, and (2) an award amo…
  • FAR 49.602-1 Termination settlement proposal forms.
    …on a total cost basis (see 49.206-2(b)). (c) Standard Form 1437, Settlement Proposal for Cost-Reimbursement Type Contracts, shall be used to submit settlement proposals resulting from the termination of cost-reimbursement contracts (see 49…
  • FAR 52.232-27 Prompt Payment for Construction Contracts.
    …shall not be construed to be an obligation of the Government for such interest penalty. A cost-reimbursement claim may not include any amount for reimbursement of such interest penalty. (l) Overpayments. If the Contractor becomes aware of …
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    As prescribed in 49.503(a)(1), insert the following clause: Termination (Cost-Reimbursement) (MAY 2004) (a) The Government may terminate performance of work under this contract in whole or, from time to time, in part, if— (1) The Contrac…
  • FAR 35.005 Work statement.
    …ntract to be negotiated (see 16.207 and 16.306(d)). For example, the work statement for a cost-reimbursement contract promising the contractor's best efforts for a fixed term would be phrased differently than a work statement for a cost-rei…
  • FAR 2.101 Definitions.
    … fiscal year (unless the parties decide upon a different period) to which it applies. For cost-reimbursement research and development contracts with educational institutions, it may be predetermined; that is, established for a future period…
  • FAR 32.407 Interest.
    …. (2) Contracts solely for the management and operation of Government-owned plants. (3) Cost-reimbursement contracts with governments, including State or local governments, or their instrumentalities. (4) Other classes of contracts, or u…
  • FAR 44.201-1 Consent requirements.
    …actor does not have an approved purchasing system, consent to subcontract is required for cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and also for unpriced actions (including unpriced modifications and unpriced …
  • FAR 51.101 Policy.
    …ng officers may authorize contractors to use these sources in performing— (1) Government cost-reimbursement contracts; (2) Other types of negotiated contracts when the agency determines that a substantial dollar portion of the contractor'…
  • FAR 52.215-2 Audit and Records—Negotiation.
    … the form of computer data, or in any other form. (b) Examination of costs. If this is a cost-reimbursement, incentive, time-and-materials, labor-hour, or price redeterminable contract, or any combination of these, the Contractor shall mai…
  • FAR 52.248-1 Value Engineering.
    …age paid the Contractor depends upon (1) this contract's type (fixed-price, incentive, or cost-reimbursement), (2) the sharing arrangement specified in paragraph (a) above (incentive, program requirement, or a combination as delineated in t…
  • DFARS 204.7103-1 Criteria for establishing.
    …ed in accordance with 204.7104; (iii) When the items or services are being acquired on a cost-reimbursement contract; (iv) When the contract is for maintenance and repair services (e.g., a labor hour contract) and firm prices have been es…
  • DFARS 252.242-7005 Contractor business systems.
    …ntractor, in writing, to withhold 5 percent from its billings on interim cost vouchers on cost-reimbursement, labor-hour, and time-and-materials contracts until the Contracting Officer has determined that the Contractor has corrected all ma…
  • FAR 4.1703 Reporting requirements.
    …ncy contracts. (2) Reporting is required according to the following thresholds: (i) All cost-reimbursement, time-and-materials, and labor-hour service contracts and orders with an estimated total value above the simplified acquisition thr…
  • FAR 7.103 Agency-head responsibilities.
    …ing process is required as the acquisition becomes more complex and costly, including for cost-reimbursement and other high-risk contracts (e.g., other than firm-fixed-price contracts) requiring a written acquisition plan. A written plan sh…
  • FAR 15.305 Proposal evaluation.
    …he otherwise successful offeror's price (see 15.403-1(c)(1)(i)(C)). When contracting on a cost-reimbursement basis, evaluations shall include a cost realism analysis to determine what the Government should realistically expect to pay for th…
  • FAR 15.404-1 Proposal analysis techniques.
    …bed in the offeror's technical proposal. (2) Cost realism analyses shall be performed on cost-reimbursement contracts to determine the probable cost of performance for each offeror. (i) The probable cost may differ from the proposed cost …
  • FAR 15.408 Solicitation provisions and contract clauses.
    …d as defined in section 2.101 and (2) The contemplated contract type is expected to be a cost-reimbursement type contract as defined in Subpart 16.3; or (B) For DoD, insert the clause when— (1) The total estimated contract or order value…
  • FAR 16.101 General.
    …types are grouped into two broad categories: fixed-price contracts (see subpart 16.2) and cost-reimbursement contracts (see subpart 16.3). The specific contract types range from firm-fixed-price, in which the contractor has full responsibil…
  • FAR 16.102 Policies.
    … cost- plus-a-percentage-of-cost subcontracts (see clauses prescribed in subpart 44.2 for cost-reimbursement contracts and subparts 16.2 and 16.4 for fixed-price contracts). (d) No contract may be awarded before the execution of any determ…
  • 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 16.301-2 Application.
    (a) The contracting officer shall use cost-reimbursement contracts only when— (1) Circumstances do not allow the agency to define its requirements sufficiently to allow for a fixed-price type contract (see 7.105); or (2) Uncertainties inv…
  • FAR 16.603-4 Contract clauses.
    …6, Payments of Allowable Costs Before Definitization, in solicitations and contracts if a cost-reimbursement definitive contract is contemplated, unless the acquisition involves conversion, alteration, or repair of ships.
  • FAR 22.407 Solicitation provision and contract clauses.
    …52.222-16, Approval of Wage Rates, in solicitations and contracts in excess of $2,000 for cost-reimbursement construction to be performed within the United States, except for contracts with a State or political subdivision thereof. (c) A c…
  • FAR 30.201-5 Waiver.
    …ed award. (2) A description of the contract or subcontract type (e.g., firm-fixed-price, cost-reimbursement). (3) Whether the segment(s) that will perform the contract or subcontract has CAS-covered contracts or subcontracts. (4) A descr…
  • FAR 31.204 Application of principles and procedures.
    …ents are for costs incurred by the subcontractor that are consistent with this part: (i) Cost-reimbursement. (ii) Fixed-price incentive. (iii) Price redeterminable (i.e., fixed-price contracts with prospective price redetermination and f…
  • FAR 35.007 Solicitations.
    …ignificant evaluation criteria (e.g., unrealistically low cost estimates in proposals for cost-reimbursement or fixed-price incentive contracts). Although cost or price is not normally the controlling factor in selecting a contractor to per…
  • FAR 35.009 Subcontracting research and development effort.
    …fic work without the contracting officer's advance knowledge. During the negotiation of a cost-reimbursement R&D contract, the contracting officer shall obtain complete information concerning the contractor's plans for subcontracting any po…

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.