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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8 sections with “incentive areas”

  • FAR 16.402-4 Structuring multiple-incentive contracts.
    A properly structured multiple-incentive arrangement should— (a) Motivate the contractor to strive for outstanding results in all incentive areas; and (b) Compel trade-off decisions among the incentive areas, consistent with the Governmen…
  • 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 19.708 Contract clauses.
    …n solicitations and contracts a clause substantially the same as the clause at 52.219-10, Incentive Subcontracting Program, when a subcontracting plan is required (see 19.702), and inclusion of a monetary incentive is, in the judgment of th…
  • FAR 48.201 Clauses for supply or service contracts.
    … 37.1); (4) Providing for product or component improvement, unless the value engineering incentive application is restricted to areas not covered by provisions for product or component improvement; (5) For commercial products (see part 11…
  • FAR 52.248-1 Value Engineering.
    …hare in any net acquisition savings realized from accepted VECP's, in accordance with the incentive sharing rates in paragraph (f) below. (b) Definitions. Acquisition savings, as used in this clause, means savings resulting from the applic…
  • FAR 15.407-2 Make-or-buy programs.
    …rwise in the best interest of the Government. If this situation occurs in any fixed-price incentive or cost-plus-incentive-fee contract, the contracting officer shall specify these items in the contract and state that they are subject to pa…
  • FAR 48.101 General.
    …, or support costs. (b) There are two value engineering approaches: (1) The first is an incentive approach in which contractor participation is voluntary and the contractor uses its own resources to develop and submit any value engineerin…
  • DFARS 244.305-70 Policy.
    …mit a corrected proposal; (ii) Considering another type of contract, e.g., a fixed-price incentive (firm target) contract instead of firm-fixed-price; (iii) Using additional cost analysis techniques to determine the reasonableness of the …

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.