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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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85 sections with “fixed-price type contracts”: the first 40

  • FAR 36.208 Concurrent performance of firm-fixed-price and other types of construction contracts.
    …adjustment features shall not be permitted concurrently, at the same work site, with firm-fixed-price, lump sum, or unit price contracts except with the prior approval of the head of the contracting activity.
  • FAR 16.403-2 Fixed-price incentive (successive targets) contracts.
    (a) Description. (1) A fixed-price incentive (successive targets) contract specifies the following elements, all of which are negotiated at the outset: (i) An initial target cost. (ii) An initial target profit. (iii) An initial profit ad…
  • FAR 28.306 Insurance under fixed-price contracts.
    …is not ordinarily concerned with the contractor's insurance coverage if the contract is a fixed-price contract, in special circumstances agencies may specify insurance requirements under fixed-price contracts. Examples of such circumstances…
  • 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 14.104 Types of contracts.
    Firm-fixed-price contracts shall be used when the method of contracting is sealed bidding, except that fixed-price contracts with economic price adjustment clauses may be used if authorized in accordance with 16.203 when some flexibility is…
  • 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 16.104 Factors in selecting contract types.
    …ce competition. Normally, effective price competition results in realistic pricing, and a fixed-price contract is ordinarily in the Government's interest. (b) Price analysis. Price analysis with or without competition, may provide a basis …
  • FAR 16.403-1 Fixed-price incentive (firm target) contracts.
    (a) Description. A fixed-price incentive (firm target) contract specifies a target cost, a target profit, a price ceiling (but not a profit ceiling or floor), and a profit adjustment formula. These elements are all negotiated at the outset.…
  • 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 36.207 Pricing fixed-price construction contracts.
    (a) Generally, firm-fixed-price contracts shall be used to acquire construction. They may be priced (1) on a lump-sum basis (when a lump sum is paid for the total work or defined parts of the work), (2) on a unit-price basis (when a unit pr…
  • 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 47.104-2 Fixed-price contracts.
    (a) F.o.b. destination. 49 U.S.C. 10721 and 13712 rates do not apply to shipments under fixed-price f.o.b. destination contracts (delivered price). (b) F.o.b. origin. If it is advantageous to the Government, the contracting officer may occ…
  • 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…
  • 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…
  • FAR 7.105 Contents of written acquisition plans.
    … selection. Discuss the rationale for the selection of contract type. For other than firm-fixed-price contracts, see 16.103(d) for additional documentation guidance. Acquisition personnel shall document the acquisition plan with findings th…
  • FAR 8.404 Use of Federal Supply Schedules.
    …allation, maintenance, and repair). GSA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activiti…
  • 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 16.201 General.
    (a) Fixed-price types of contracts provide for a firm price or, in appropriate cases, an adjustable price. Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price (including target cost), or both.…
  • FAR 31.204 Application of principles and procedures.
    …d 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 fixed-ceiling-price contrac…
  • FAR 52.232-27 Prompt Payment for Construction Contracts.
    …ined by the Contracting Officer in accordance with the clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, is as specified in the contract or, if not specified, 30 days after approval by the Contracting Officer for releas…
  • 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 212.7002 Policy.
    …e reasonably anticipated. (b) Notwithstanding FAR 12.207, contracting officers shall use fixed-price type contracts, including fixed-price incentive contracts, for awards resulting from a CSO. When using a fixed-price incentive contract, s…
  • DFARS 216.601 Time-and-materials contracts.
    …y; (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 for other than commercial product…
  • FAR 7.103 Agency-head responsibilities.
    …ly, 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 shall be prepared for cost reimbursement and other high-risk contracts oth…
  • FAR 15.305 Proposal evaluation.
    …ally, competition establishes price reasonableness. Therefore, when contracting on a firm-fixed-price or fixed-price with economic price adjustment basis, comparison of the proposed prices will usually satisfy the requirement to perform a p…
  • FAR 16.102 Policies.
    (a) Contracts resulting from sealed bidding shall be firm-fixed-price contracts or fixed-price contracts with economic price adjustment. (b) Contracts negotiated under part 15 may be of any type or combination of types that will promote th…
  • FAR 30.606 Resolving cost impacts.
    …es, the CFAO shall— (i) To the maximum extent practical, not adjust the price upward for fixed-price contracts; (ii) If contract adjustments are made, preclude payment of aggregate increased costs by taking one or both of the following ac…
  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    …02(b)(1)(i), insert the following clause: Termination for Convenience of the Government (Fixed-Price) (APR 2012) (a) The Government may terminate performance of work under this contract in whole or, from time to time, in part if the Contr…
  • DFARS 234.004 Acquisition strategy.
    …would not be practicable to reduce program risk to a level that would permit the use of a fixed-price type contract; and (2) The complexity and technical challenge of the program is not the result of a failure to meet the requirements of 1…
  • FAR 15.404-4 Profit.
    …r cost risks. (B) The contractor assumes the greatest cost risk in a closely priced firm-fixed-price contract under which it agrees to perform a complex undertaking on time and at a predetermined price. Some firm-fixed-price contracts may …
  • FAR 16.401 General.
    (a) Incentive contracts as described in this subpart are appropriate when a firm-fixed-price contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery …
  • FAR 22.407 Solicitation provision and contract clauses.
    …Pricing Method), in solicitations and contracts if the contract is expected to be— (1) A fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer m…
  • FAR 45.402 Title to contractor-acquired property.
    …ing provisions or other specific requirements for passage of title in the contract. Under fixed-price type contracts, in the absence of financing provisions or other specific requirements for passage of title in the contract, the contractor…
  • FAR 49.602-1 Termination settlement proposal forms.
    …ry Basis), shall be used to submit settlement proposals resulting from the termination of fixed-price contracts if the proposals are computed on an inventory basis (see 49.206-2(a)). (b) Standard Form 1436, Settlement Proposal (Total Cost …
  • 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…
  • FAR 52.226-1 Utilization of Indian Organizations and Indian-Owned Economic Enterprises.
    …f a cost-plus-incentive-fee prime contract. (iii) The target cost and ceiling price of a fixed-price incentive prime contract. (iv) The price of a firm-fixed-price prime contract. (3) The amount of the adjustment to the prime contract is…
  • DFARS 228.102-1 General.
    …t bonds is waived for cost-reimbursement contracts. However, for cost-type contracts with fixed-price construction subcontracts over $40,000, require the prime contractor to obtain from each of its construction subcontractors performance an…
  • DFARS 246.704 Authority for use of warranties.
    …e warranty provides for extended liability (see 246.708); (iii) Supplies and services in fixed-price type contracts containing quality assurance provisions that reference higher-level contract quality requirements (see 246.202-4); or (iv)…
  • FAR 8.405-2 Ordering procedures for services requiring a statement of work.
    …s at 8.405-6(a). (iii) The ordering activity shall specify the type of order (i.e., firm-fixed-price, labor-hour) for the services identified in the statement of work. The contracting officer should establish firm-fixed-prices, as appropri…
  • FAR 15.404-1 Proposal analysis techniques.
    … of the cost realism analysis. (3) Cost realism analyses may also be used on competitive fixed-price incentive contracts or, in exceptional cases, on other competitive fixed-price-type contracts when new requirements may not be fully under…

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.