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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7 sections with “fee adjustment formula”

  • 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 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 52.248-1 Value Engineering.
    …high as 75 percent for each VECP. 2 Same sharing arrangement as the contract's profit or fee adjustment formula. 3 The Contracting Officer may increase the Contractor's sharing rate to as high as 50 percent for each VECP. (g) Calculating…
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    … working capital adjustment. (5) These types of contracts are considered cost-plus-fixed-fee contracts for the purposes of assigning profit values. They shall not receive the working capital adjustment in Block 25. However, they may receiv…
  • FAR 48.104-2 Sharing acquisition savings.
    … (See 48.102(g) (1) through (7).) 2 Same sharing arrangement as the contract's profit or fee adjustment formula. 3 The contracting officer may increase the contractor's sharing rate to as high as 50 percent for each VECP. (See 48.102(g) (…
  • FAR 2.101 Definitions.
    …tment of Agriculture to be a commercial product or industrial product (other than food or feed) that is composed, in whole or in significant part, of biological products, including renewable domestic agricultural materials and forestry mate…
  • FAR 17.207 Exercise of options.
    … (3) In the case of a cost-type contract, if— (i) The option contains a fixed or maximum fee; or (ii) The fixed or maximum fee amount is determinable by applying a formula contained in the basic contract (but see 16.102(c)); (4) A specif…

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.