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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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76 sections with “fixed fee”: the first 40

  • FAR 52.216-8 Fixed Fee.
    …in 16.307(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 …
  • FAR 52.216-9 Fixed Fee—Construction.
    …in 16.307(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 thi…
  • 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 16.404 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 15.404-4 Profit.
    …3905): (A) For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract's estimated cost, excluding fee. (B) For architect-engineer services for publ…
  • FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity.
    …roper Activity (MAY 2014) (a) The Government, at its election, may reduce the price of a fixed-price type contract and the total cost and fee under a cost-type contract by the amount of profit or fee determined as set forth in paragraph (b…
  • DFARS 216.306 Cost-plus-fixed-fee contracts.
    …s section, 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 perfor…
  • 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…
  • FAR 16.307 Contract clauses.
    … with 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 contracti…
  • DFARS 216.405-2 Cost-plus-award-fee contracts.
    …ost-plus-award-fee contract shall not be used— (A) To avoid— (1) Establishing cost-plus-fixed-fee contracts when the criteria for cost-plus-fixed-fee contracts apply; or (2) Developing objective targets so a cost-plus-incentive-fee contr…
  • FAR 12.207 Contract type.
    (a) Except as provided in paragraph (b) of this section, agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial products or commercial services. (b)(1) A time…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …cant value, the contracting officer shall use the clause with— (1) Its Alternate I, if a fixed-price incentive contract is contemplated; or (2) Its Alternate II, if a cost-plus-incentive-fee contract is contemplated. (b) Price Reduction …
  • FAR 16.103 Negotiating contract type.
    …tractor with the greatest incentive for efficient and economical performance. (b) A firm-fixed-price contract, which best utilizes the basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be pr…
  • FAR 30.604 Processing changes to disclosed or established cost accounting practices.
    …es multiplied by the total estimated base computed for each of the following groups: (A) Fixed-price contracts and subcontracts. (B) Flexibly-priced contracts and subcontracts. (iii) Any other method that provides a reasonable approximat…
  • FAR 35.006 Contracting methods and contract type.
    …ng the recommendations of technical personnel. Although the Government ordinarily prefers fixed-price arrangements in contracting, this preference applies in R&D contracting only to the extent that goals, objectives, specifications, and cos…
  • FAR 36.208 Concurrent performance of firm-fixed-price and other types of construction contracts.
    In view of potential labor and administrative problems, cost-plus-fixed-fee, price-incentive, or other types of contracts with cost variation or cost adjustment features shall not be permitted concurrently, at the same work site, with firm-…
  • FAR 49.502 Termination for convenience of the Government.
    (a) Fixed-price contracts that do not exceed the simplified acquisition threshold (short form)—(1) General use. The contracting officer shall insert the clause at 52.249-1, Termination for Convenience of the Government (Fixed-Price) (Short …
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …in (i)(6)(v) of this clause, and then at the rate applicable for each six-month period as fixed by the Secretary until the amount is paid. (ii) The Government may issue a demand for payment to the Contractor upon finding a debt is due unde…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …prohibition provisions of CAS-covered contracts and subcontracts affected by the change. Fixed-price contracts and subcontracts means— (1) Fixed-price contracts and subcontracts described at FAR 16.202, 16.203, (except when price adjustme…
  • FAR 52.246-3 Inspection of Supplies—Cost-Reimbursement.
    …ion and charge to the Contractor any increased cost or make an equitable reduction in any fixed fee paid or payable under the contract; (ii) Require delivery of undelivered supplies at an equitable reduction in any fixed fee paid or payabl…
  • FAR 52.246-8 Inspection of Research and Development—Cost-Reimbursement.
    …ction, charge to the Contractor any increased cost, or make an equitable reduction in any fixed fee paid or payable under the contract; (ii) Require delivery of any undelivered articles and shall have the right to make an equitable reducti…
  • FAR 52.248-1 Value Engineering.
    … the term does not include quantities funded after VECP acceptance. If this contract is a fixed-price contract with prospective price redetermination, the term refers to the period for which firm prices have been established. Instant unit …
  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    …is an adjustment added to the profit objective for contract type risk. It only applies to fixed-price contracts that provide for progress payments. Though it uses a formula approach, it is not intended to be an exact calculation of the cost…
  • DFARS 216.601 Time-and-materials contracts.
    …to anticipate costs with 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-delive…
  • DFARS 252.246-7001 Warranty of data.
    …ontractor's liability shall be— (A) Ten percent of the total subcontract price in a firm-fixed-price subcontract; (B) Seventy-five percent of the total subcontract fee in a cost-plus-fixed-fee or cost-plus-award-fee subcontract; or (C) S…
  • FAR 16.101 General.
    …cified standards or goals. (b) The contract 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,…
  • FAR 16.305 Cost-plus-award-fee contracts.
    …ment 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 the Government, sufficient to provide motivation for…
  • FAR 16.405-2 Cost-plus-award-fee contracts.
    … 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 amount that the contractor may ea…
  • FAR 30.605 Processing noncompliances.
    …act and subcontract incentives, fees, and profits, for each of the following groups: (A) Fixed-price contracts and subcontracts. (B) Flexibly-priced contracts and subcontracts. (ii) The increased or decreased costs to the Government for …
  • FAR 32.001 Definitions.
    …ompletion (see 32.102(e)), except those made under the clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, or the clause at 52.232-10, Payments Under Fixed-Price Architect-Engineer Contracts; and (vi) Interim payments un…
  • FAR 44.201-2 Advance notification requirements.
    …chasing system, 10 U.S.C. 3322(c) requires notification before the award of any cost-plus-fixed-fee subcontract, or any fixed-price subcontract that exceeds the greater of the simplified acquisition threshold or 5 percent of the total estim…
  • FAR 49.115 Settlement of terminated incentive contracts.
    (a) Fixed-price incentive contracts. The TCO shall settle terminated fixed-price incentive (FPI) contracts under the provisions of paragraph (j) of the clause at 52.216-16, Incentive Price Revision—Firm Target, and 52.249-2, Termination for…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts completely terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated ____________________…
  • FAR 49.603-2 Fixed-price contracts—partial termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts partially terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated __________________. …
  • FAR 52.219-10 Incentive Subcontracting Program.
    …al decisions made solely at the discretion of the Government. (c) If this is a cost-plus-fixed-fee contract, the sum of the fixed fee and the incentive fee earned under this contract may not exceed the limitations in 15.404-4 of the Federa…
  • FAR 52.229-6 Taxes—Foreign Fixed-Price Contracts.
    As prescribed in 29.402-1(a), insert the following clause: Taxes—Foreign Fixed-Price Contracts (FEB 2013) (a) To the extent that this contract provides for furnishing supplies or performing services outside the United States and its outly…
  • FAR 52.243-1 Changes—Fixed-Price.
    …ollowing clause. The 30-day period may be varied according to agency procedures. Changes—Fixed-Price (AUG 1987) (a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within…
  • FAR 52.244-2 Subcontracts.
    … and changes and modifications to purchase orders. (b) When this clause is included in a fixed-price type contract, consent to subcontract is required only on unpriced contract actions (including unpriced modifications or unpriced delivery…
  • DFARS 252.232-7003 Electronic Submission of Payment Requests and Receiving Reports.
    …n (see FAR 32.102(e)), except those made under the clause at FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, or the clause at FAR 52.232-10, Payments Under Fixed-Price Architect-Engineer Contracts; and (vi) Interim payment…
  • FAR 15.407-1 Defective certified cost or pricing data.
    …based are not themselves defective. (2) Under cost-reimbursement contracts and under all fixed-price contracts except firm-fixed-price contracts and fixed-price contracts with economic price adjustment, payments to subcontractors that are …

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.