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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19 sections with “incentive contract types”
- FAR 15.408 Solicitation provisions and contract clauses.…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 for Defectiv…
- FAR 16.402-2 Performance incentives.(a) Performance incentives may be considered in connection with specific product characteristics (e.g., a missile range, an aircraft speed, an engine thrust, or a vehicle maneuverability) or other specific elements of the contractor's perfo…
- DFARS 215.404-71-3 Contract type risk and working capital adjustment.… treat a fixed-price contract with redetermination provisions as if it were a fixed-price incentive contract with below normal conditions. (4) Cost-plus contracts shall not receive the working capital adjustment. (5) These types of contra…
- FAR 16.104 Factors in selecting contract types.… factor, the Government may choose to assume a greater proportion of risk or it may offer incentives tailored to performance outcomes to ensure timely contract performance. (g) Period of performance or length of production run. In times of…
- 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 12.207 Contract type.… by this subpart may be used in conjunction with an award fee and performance or delivery incentives when the award fee or incentive is based solely on factors other than cost (see 16.202-1 and 16.203-1). (e) Use of any contract type other…
- 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 31.205-6 Compensation for personal services.…wable reimbursed relocation costs are allowable under 31.205-35(a)(10).) (f) Bonuses and incentive compensation. (1) Bonuses and incentive compensation are allowable provided the— (i) Awards are paid or accrued under an agreement entered …
- DFARS 215.404-71-2 Performance risk.…) Standard. The standard designated range should apply to most contracts. (2) Technology incentive. For the technical factor only, contracting officers may use the technology incentive range for acquisitions that include development, produ…
- FAR 16.103 Negotiating contract type.…at will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance. (b) A firm-fixed-price contract, which best utilizes the basic profit motive of business enterpri…
- FAR 16.203-1 Description.…se a fixed-price contract with economic price adjustment in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors o…
- DFARS 216.104 Factors in selecting contract type.…rement and Acquisition Policy memorandum dated April 1, 2016, entitled “Guidance on Using Incentive and Other Contract Types,” when selecting and negotiating the most appropriate contract type for a given procurement. See PGI 216.104.
- FAR 16.101 General.…y the contractor for the costs of performance and (2) the amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals. (b) The contract types are grouped into two broad catego…
- 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 15.404-1 Proposal analysis techniques.… 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 understood by com…
- FAR 31.204 Application of principles and procedures.…contractor 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 contracts with retr…
- FAR 32.604 Demand for payment.…lty. (4)(i) For debts resulting from specific contract terms (e.g., debts resulting from incentive clause provisions, Quarterly Limitation on Payments Statement, Cost Accounting Standards, price reduction for defective pricing), a notifica…
- DFARS 215.404-71-4 Facilities capital employed.…ormal, booked costs, to establish a cost objective or the target cost when structuring an incentive type contract. Do not adjust target costs established at the outset even though actual cost of money rates become available during the perio…
- DFARS 216.301-3 Limitations.…contracting officers shall not use cost-plus-fixed-fee, cost-plus-award-fee, or cost-plus-incentive-fee contract types (10 U.S.C. 3323). This applies notwithstanding a declaration of war or the declaration by the President of a national eme…
FAR (chapter 1)
- Part 1 Federal Acquisition Regulations System 58 sections
- Part 2 Definitions of Words and Terms 3 sections
- Part 3 Improper Business Practices and Personal Conflicts of Interest 98 sections
- Part 4 Administrative and Information Matters 116 sections
- Part 5 Publicizing Contract Actions 34 sections
- Part 6 Competition Requirements 34 sections
- Part 7 Acquisition Planning 34 sections
- Part 8 Required Sources of Supplies and Services 67 sections
- Part 9 Contractor Qualifications 106 sections
- Part 10 Market Research 4 sections
- Part 11 Describing Agency Needs 33 sections
- Part 12 Acquisition of Commercial Products and Commercial Services 38 sections
- Part 13 Simplified Acquisition Procedures 49 sections
- Part 14 Sealed Bidding 82 sections
- Part 15 Contracting by Negotiation 81 sections
- Part 16 Types of Contracts 74 sections
- Part 17 Special Contracting Methods 50 sections
- Part 18 Emergency Acquisitions 34 sections
- Part 19 Small Business Programs 126 sections
- Part 22 Application of Labor Laws to Government Acquisitions 205 sections
- Part 23 Environment, Sustainable Acquisition, and Material Safety 38 sections
- Part 24 Protection of Privacy and Freedom of Information 10 sections
- Part 25 Foreign Acquisition 81 sections
- Part 26 Other Socioeconomic Programs 36 sections
- Part 27 Patents, Data, and Copyrights 59 sections
- Part 28 Bonds and Insurance 61 sections
- Part 29 Taxes 23 sections
- Part 30 Cost Accounting Standards Administration 30 sections
- Part 31 Contract Cost Principles and Procedures 87 sections
- Part 32 Contract Financing 175 sections
- Part 33 Protests, Disputes, and Appeals 23 sections
- Part 34 Major System Acquisition 20 sections
- Part 35 Research and Development Contracting 25 sections
- Part 36 Construction and Architect-engineer Contracts 81 sections
- Part 37 Service Contracting 46 sections
- Part 38 Federal Supply Schedule Contracting 3 sections
- Part 39 Acquisition of Information Technology 14 sections
- Part 40 Information Security and Supply Chain Security 12 sections
- Part 41 Acquisition of Utility Services 17 sections
- Part 42 Contract Administration and Audit Services 84 sections
- Part 43 Contract Modifications 14 sections
- Part 44 Subcontracting Policies and Procedures 24 sections
- Part 45 Government Property 33 sections
- Part 46 Quality Assurance 60 sections
- Part 47 Transportation 106 sections
- Part 48 Value Engineering 13 sections
- Part 49 Termination of Contracts 108 sections
- Part 50 Extraordinary Contractual Actions and the Safety Act 34 sections
- Part 51 Use of Government Sources by Contractors 15 sections
- Part 52 Solicitation Provisions and Contract Clauses 680 sections
- Part 53 Forms 61 sections
DFARS (chapter 2, Defense)
- Part 201 Federal Acquisition Regulations System 24 sections
- Part 202 Definitions of Words and Terms 1 sections
- Part 203 Improper Business Practices and Personal Conflicts of Interest 28 sections
- Part 204 Administrative and Information Matters 76 sections
- Part 205 Publicizing Contract Actions 11 sections
- Part 206 Competition Requirements 20 sections
- Part 207 Acquisition Planning 22 sections
- Part 208 Required Sources of Supplies and Services 31 sections
- Part 209 Contractor Qualifications 55 sections
- Part 210 Market Research 2 sections
- Part 211 Describing Agency Needs 22 sections
- Part 212 Acquisition of Commercial Products and Commercial Services 24 sections
- Part 213 Simplified Acquisition Procedures 23 sections
- Part 214 Sealed Bidding 14 sections
- Part 215 Contracting by Negotiation 66 sections
- Part 216 Types of Contracts 36 sections
- Part 217 Special Contracting Methods 64 sections
- Part 218 Emergency Acquisitions 7 sections
- Part 219 Small Business Programs 47 sections
- Part 222 Application of Labor Laws to Government Acquisitions 56 sections
- Part 223 Environment, Sustainable Acquisition, and Material Safety 34 sections
- Part 224 Protection of Privacy and Freedom of Information 2 sections
- Part 225 Foreign Acquisition 251 sections
- Part 226 Other Socioeconomic Programs 14 sections
- Part 227 Patents, Data, and Copyrights 99 sections
- Part 228 Bonds and Insurance 17 sections
- Part 229 Taxes 9 sections
- Part 230 Cost Accounting Standards Administration 2 sections
- Part 231 Contract Cost Principles and Procedures 13 sections
- Part 232 Contract Financing 74 sections
- Part 233 Protests, Disputes, and Appeals 8 sections
- Part 234 Major System Acquisition 13 sections
- Part 235 Research and Development Contracting 16 sections
- Part 236 Construction and Architect-engineer Contracts 25 sections
- Part 237 Service Contracting 67 sections
- Part 239 Acquisition of Information Technology 38 sections
- Part 241 Acquisition of Utility Services 8 sections
- Part 242 Contract Administration and Audit Services 40 sections
- Part 243 Contract Modifications 18 sections
- Part 244 Subcontracting Policies and Procedures 13 sections
- Part 245 Government Property 23 sections
- Part 246 Quality Assurance 39 sections
- Part 247 Transportation 27 sections
- Part 249 Termination of Contracts 14 sections
- Part 250 Extraordinary Contractual Actions and the Safety Act 16 sections
- Part 251 Use of Government Sources by Contractors 5 sections
- Part 252 Solicitation Provisions and Contract Clauses 405 sections
- Part 253 Forms 10 sections
- Part 270 Defense Contracting Programs 7 sections
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.