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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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288 sections with “fee”: 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 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 49.603-4 Cost-reimbursement contracts—complete termination, with settlement limited to fee.
    … 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, terminated in its entirety by Notice of Termination dated ___…
  • FAR 52.203-5 Covenant Against Contingent Fees.
    As prescribed in 3.404, insert the following clause: Covenant Against Contingent Fees (MAY 2014) (a) The Contractor warrants that no person or agency has been employed or retained to solicit or obtain this contract upon an agreement or un…
  • FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity.
    As prescribed in 3.104-9(b) insert the following clause: Price or Fee Adjustment for Illegal or Improper Activity (MAY 2014) (a) The Government, at its election, may reduce the price of a fixed-price type contract and the total cost and f…
  • FAR 52.216-8 Fixed Fee.
    …307(b), insert the following clause in solicitations and contracts when a cost-plus-fixed-fee contract (other than a facilities contract or a construction contract) is contemplated. Fixed Fee (JUN 2011) (a) The Government shall pay the Co…
  • FAR 52.216-9 Fixed Fee—Construction.
    …307(c), insert the following clause in solicitations and contracts when a cost-plus-fixed-fee construction contract is contemplated: Fixed Fee—Construction (JUN 2011) (a) The Government shall pay to the Contractor for performing this cont…
  • FAR 52.216-10 Incentive Fee.
    …d), insert the following clause in solicitations and contracts when a cost-plus-incentive-fee contract (other than a facilities contract) is contemplated: Incentive Fee (JUN 2011) (a) General. The Government shall pay the Contractor for p…
  • DFARS 216.405-2 Cost-plus-award-fee contracts.
    (1) Award-fee pool. The award-fee pool is the total available award fee for each evaluation period for the life of the contract. The contracting officer shall perform an analysis of appropriate fee distribution to ensure at least 40 percent…
  • DFARS 216.405-2-70 Award fee reduction or denial for jeopardizing the health or safety of Government personnel.
    … bodily injury, as used in this section, are defined in the clause at 252.216-7004, Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel. (b) The contracting officer shall include in the evaluation cr…
  • DFARS 225.7303-4 Contingent fees.
    (a) Except as provided in paragraph (b) of this subsection, contingent fees are generally allowable under DoD contracts, provided— (1) The fees are paid to a bona fide employee or a bona fide established commercial or selling agency mainta…
  • DFARS 252.225-7027 Restriction on contingent fees for foreign military sales.
    As prescribed in 225.7307(a), use the following clause. Restriction on Contingent Fees for Foreign Military Sales (APR 2003) (a) Except as provided in paragraph (b) of this clause, contingent fees, as defined in the Covenant Against Conti…
  • DFARS 215.404-75 Fee requirements for FFRDCs.
    … organizations that are FFRDCs, the contracting officer— (a) Should consider whether any fee is appropriate. Considerations shall include the FFRDC's— (1) Proportion of retained earnings (as established under generally accepted accounting…
  • FAR 3.405 Misrepresentations or violations of the Covenant Against Contingent Fees.
    … of attempted or actual exercise of improper influence, misrepresentation of a contingent fee arrangement, or other violation of the Covenant Against Contingent Fees shall report the matter promptly to the contracting officer or appropriate…
  • FAR 16.304 Cost-plus-incentive-fee contracts.
    A cost-plus-incentive-fee contract is a cost-reimbursement contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. Cost-plus-incentiv…
  • FAR 16.305 Cost-plus-award-fee contracts.
    A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (a) a base amount (which may be zero) fixed at inception of the contract and (b) an award amount, based upon a judgmental evaluation by th…
  • FAR 52.216-11 Cost Contract—No Fee.
    …tations 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 $10,000 in lieu of $100,000 as the maximum reserve in paragraph (b…
  • DFARS 215.404-74 Fee requirements for cost-plus-award-fee contracts.
    In developing a fee objective for cost-plus-award-fee contracts, the contracting officer shall— (a) Follow the guidance in FAR 16.405-2 and 216.405-2; (b) Not use the weighted guidelines method or alternate structured approach; (c) Apply…
  • DFARS 216.405-2-71 Award fee reduction or denial for failure to comply with requirements relating to performance of private security functions.
    … Act for Fiscal Year 2008, as amended, the contracting officer shall include in any award-fee plan a requirement to review contractor compliance with, or violation of, applicable requirements of the contract with regard to the performance o…
  • DFARS 252.216-7004 Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel.
    As prescribed in 216.406(e) use the following clause: Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel (SEP 2011) (a) Definitions. As used in this clause— Covered incident— (i) Means any incide…
  • FAR 16.404 Fixed-price contracts with award fees.
    Award-fee provisions may be used in fixed-price contracts when the Government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively. Such contracts shall establish …
  • 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 49.304-2 Submission of settlement proposal (fee only).
    …e contractor shall limit the settlement proposal to a proposed reduction in the amount of fee. The final settlement proposal shall be submitted to the TCO within one year from the effective date of termination, unless the period is extended…
  • FAR 52.216-12 Cost-Sharing Contract—No Fee.
    …paragraph (b) if the contract is with a nonprofit organization. Cost-Sharing Contract—No Fee (APR 1984) (a) The Government shall not pay to the Contractor a fee for performing this contract. (b) After paying 80 percent of the Government'…
  • DFARS 216.306 Cost-plus-fixed-fee contracts.
    …ion, annual military construction appropriations acts prohibit the use of cost-plus-fixed-fee contracts that— (A) Are funded by a military construction appropriations act; (B) Are estimated to exceed $25,000; and (C) Will be performed wi…
  • DFARS 216.405-1 Cost-plus-incentive-fee contracts.
    See PGI 216.405-1 for guidance on the use of cost-plus-incentive-fee contracts.
  • DFARS 216.470 Other applications of award fees.
    See PGI 216.470 for guidance on other applications of award fees.
  • DFARS 236.271 Cost-plus-fixed-fee contracts.
    Annual military construction appropriations acts restrict the use of cost-plus-fixed-fee contracts (see 216.306(c)). See also 216.301-3 regarding the prohibition on the use of certain cost-reimbursement contracts in connection with a milita…
  • DFARS 236.606-70 Statutory fee limitation.
    … Departments of the Army, Navy, and Air Force, respectively, limit the contract price (or fee) for architect-engineer services for the preparation of designs, plans, drawings, and specifications to 10 percent of the project's estimated cons…
  • FAR 49.305 Adjustment of fee.
  • FAR 15.404-4 Profit.
    (a) General. This subsection prescribes policies for establishing the profit or fee portion of the Government prenegotiation objective in price negotiations based on cost analysis. (1) Profit or fee prenegotiation objectives do not necessa…
  • FAR 15.405 Price negotiation.
    …ccupied with any single element and should balance the contract type, cost, and profit or fee negotiated to achieve a total result—a price that is fair and reasonable to both the Government and the contractor. (c) The Government's cost obj…
  • FAR 16.001 Definitions.
    As used in this part— Award-Fee Board means the team of individuals identified in the award-fee plan who have been designated to assist the Fee-Determining Official in making award-fee determinations. Established price means a price that—…
  • FAR 16.307 Contract clauses.
    …its Alternate IV. (b) The contracting officer shall insert the clause at 52.216-8, Fixed Fee, in solicitations and contracts when a cost-plus-fixed-fee contract (other than a construction contract) is contemplated. (c) The contracting off…
  • FAR 16.401 General.
    …ces, with improved delivery or technical performance, by relating the amount of profit or fee payable under the contract to the contractor's performance. Incentive contracts are designed to obtain specific acquisition objectives by— (1) Es…
  • FAR 16.402-1 Cost incentives.
    …Most incentive contracts include only cost incentives, which take the form of a profit or fee adjustment formula and are intended to motivate the contractor to effectively manage costs. No incentive contract may provide for other incentives…
  • FAR 16.406 Contract clauses.
    …ibed in 16.307(a) for insertion in solicitations and contracts when a cost-plus-incentive-fee contract or a cost-plus-award-fee contract is contemplated. (d) The clause at 52.216-10, Incentive Fee, is prescribed in 16.307(d) for insertion …
  • FAR 17.802 Policy.
    …irectly by the Government for reverse auction services, other providers may incorporate a fee structure that uses an indirect payment method. When using an indirect payment method, the reverse auction service provider adds a fee(s) to the p…
  • FAR 22.1702 Definitions.
    … (3) By means of the abuse or threatened abuse of law or the legal process. Recruitment fees means fees of any type, including charges, costs, assessments, or other financial obligations, that are associated with the recruiting process, r…
  • FAR 31.205-33 Professional and consultant service costs.
    …or otherwise agreed to. (d) In determining the allowability of costs (including retainer fees) in a particular case, no single factor or any special combination of factors is necessarily determinative. However, the contracting officer shal…

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.