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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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50 sections with “indirect cost rate proposal”: the first 40

  • FAR 52.216-15 Predetermined Indirect Cost Rates.
    As prescribed in 16.307(g), insert the following clause: Predetermined Indirect Cost Rates (APR 1998) (a) Notwithstanding the Allowable Cost and Payment clause of this contract, the allowable indirect costs under this contract shall be ob…
  • FAR 42.707 Cost-sharing rates and limitations on indirect cost rates.
    …zed, may call for the contractor to participate in the costs of the contract by accepting indirect cost rates lower than the anticipated actual rates. In such cases, a negotiated indirect cost rate ceiling may be incorporated into the contr…
  • FAR 42.703-2 Certificate of indirect costs.
    … 4307, a proposal shall not be accepted and no agreement shall be made to establish final indirect cost rates unless the costs have been certified by the contractor. (b) Waiver of certification. (1) The agency head, or designee, may waive …
  • FAR 31.110 Indirect cost rate certification and penalties on unallowable costs.
    (a) Certain contracts require certification of the indirect cost rates proposed for final payment purposes. See 42.703-2 for administrative procedures regarding the certification provisions and the related contract clause prescription. (b)…
  • FAR 52.242-4 Certification of Final Indirect Costs.
    As prescribed in 42.703-2(f), insert the following clause: Certification of Final Indirect Costs (JAN 1997) (a) The Contractor shall— (1) Certify any proposal to establish or modify final indirect cost rates; (2) Use the format in parag…
  • FAR 42.704 Billing rates.
    …t Federal agency official) or auditor responsible under 42.705 for establishing the final indirect cost rates also shall be responsible for determining the billing rates. (b) The contracting officer (or cognizant Federal agency official) o…
  • FAR 52.216-7 Allowable Cost and Payment.
    …irect travel; (E) Other direct in-house costs; and (F) Properly allocable and allowable indirect costs, as shown in the records maintained by the Contractor for purposes of obtaining reimbursement under Government contracts; and (iii) Th…
  • FAR 31.205-22 Lobbying and political activity costs.
    … (6) Costs incurred in attempting to improperly influence (see 3.401), either directly or indirectly, an employee or officer of the Executive branch of the Federal Government to give consideration to or act regarding a regulatory or contrac…
  • FAR 31.205-42 Termination costs.
    …on, protection, and disposition of property acquired or produced for the contract. (iii) Indirect costs related to salary and wages incurred as settlement expenses in (i) and (ii); normally, such indirect costs shall be limited to payroll …
  • DFARS 231.205-18 Independent research and development and bid and proposal costs.
    …&D projects. (iv) Contractors are required to report incurred IR&D costs separately from indirect costs. (v) Contractors are required to report incurred B&P costs separately from other indirect costs.
  • FAR 31.205-18 Independent research and development and bid and proposal costs.
    …subsection, or as provided in agency regulations, costs for IR&D and B&P are allowable as indirect expenses on contracts to the extent that those costs are allocable and reasonable. (d) Deferred IR&D costs. (1) IR&D costs that were incurre…
  • FAR 42.705-1 Contracting officer determination procedure.
    …ing officer (or cognizant Federal agency official) responsible for establishing the final indirect cost rates: (1) Business units of a multidivisional corporation under the cognizance of a corporate administrative contracting officer (see …
  • FAR 42.705-2 Auditor determination procedure.
    …licability and responsibility. (1) The cognizant Government auditor shall establish final indirect cost rates for business units not covered in 42.705-1(a). (2) In addition, auditor determination may be used for business units that are cov…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …esentative sample of affected CAS-covered contracts and subcontracts. (ii) The change in indirect rates multiplied by the total estimated base computed for each of the following groups: (A) Fixed-price contracts and subcontracts. (B) Fle…
  • FAR 52.242-3 Penalties for Unallowable Costs.
    … (DEC 2022) (a) Definition. Proposal, as used in this clause, means either— (1) A final indirect cost rate proposal submitted by the Contractor after the expiration of its fiscal year which— (i) Relates to any payment made on the basis o…
  • FAR 15.407-4 Should-cost review.
    …evaluate significant elements of direct costs, such as material and labor, and associated indirect costs, usually associated with the production of major systems. When a program should-cost review is conducted relative to a contractor propo…
  • DFARS 231.205-70 External restructuring costs.
    …employee relocation), nor do they include other routine or ordinary activities charged as indirect costs that would otherwise have been incurred (e.g., planning and analysis, contract administration and oversight, or recurring financial and…
  • FAR 2.101 Definitions.
    …the system. Affiliates means associated business concerns or individuals if, directly or indirectly either one controls or can control the other; or third party controls or can control both, except as follows: (1) For use in subpart 9.4, …
  • FAR 15.404-2 Data to support proposal analysis.
    …ll be issued. (2) The contracting officer shall not request a separate preaward audit of indirect costs unless the information already available from an existing audit, completed within the preceding 12 months, is considered inadequate for…
  • FAR 15.404-4 Profit.
    …supervision and coordination needed to perform the contract task. (C) Conversion-related indirect costs. This subfactor measures how much the indirect costs contribute to contract performance. The labor elements in the allocable indirect c…
  • FAR 30.604 Processing changes to disclosed or established cost accounting practices.
    …esentative sample of affected CAS-covered contracts and subcontracts. (ii) The change in indirect rates multiplied by the total estimated base computed for each of the following groups: (A) Fixed-price contracts and subcontracts. (B) Fle…
  • FAR 42.705-3 Educational institutions.
    (a) General. (1) Postdetermined final indirect cost rates shall be used in the settlement of indirect costs for all cost-reimbursement contracts with educational institutions, unless predetermined final indirect cost rates are authorized an…
  • FAR 42.709-6 Waiver of the penalty.
    …n notice, or holds an entrance conference, indicating that audit work on a specific final indirect cost proposal has begun); (b) The amount of the unallowable costs under the proposal which are subject to the penalty is $10,000 or less (i.…
  • FAR 52.219-9 Small Business Subcontracting Plan.
    … under the criteria at 43 U.S.C. 1626(e)(1). This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2). Commercial plan means a subcon…
  • FAR 15.403-5 Instructions for submission of certified cost or pricing data and data other than certified cost or pricing data.
    …forward pricing rate agreements. Data supporting forward pricing rate agreements or final indirect cost proposals shall be submitted in a form acceptable to the contracting officer.
  • FAR 15.404-1 Proposal analysis techniques.
    …odels or cost-estimating relationships; and (D) The application of audited or negotiated indirect cost rates, labor rates, and cost of money or other factors. (ii) Evaluating the effect of the offeror's current practices on future costs. …
  • FAR 15.406-2 Certificate of current cost or pricing data.
    …n data may not be reasonably available before normal periodic closing dates (e.g., actual indirect costs). Data within the contractor's or a subcontractor's organization on matters significant to contractor management and to the Government …
  • FAR 19.704 Subcontracting plan requirements.
    …ces for solicitation purposes; (6) A statement as to whether or not the offeror included indirect costs in establishing subcontracting goals (for commercial plans, see paragraph (d) of this section), and a description of the method used to…
  • FAR 31.201-6 Accounting for unallowable costs.
    …ampling process. (iii) The statistical sampling permits audit verification. (3) For any indirect cost in the selected sample that is subject to the penalty provisions at 42.709, the amount projected to the sampling universe from that samp…
  • FAR 42.709-1 Scope.
    …4303. It covers the assessment of penalties against contractors which include unallowable indirect costs in— (1) Final indirect cost rate proposals; or (2) The final statement of costs incurred or estimated to be incurred under a fixed-pr…
  • FAR 52.216-8 Fixed Fee.
    …ent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms …
  • FAR 52.216-9 Fixed Fee—Construction.
    …ent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms …
  • FAR 52.216-10 Incentive Fee.
    …ent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms …
  • DFARS 215.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
    …tract, or modification of a contract or subcontract to the extent such data relates to an indirect offset. (c) Standards for exceptions from certified cost or pricing data requirements—(1) Adequate price competition. (A) For acquisitions …
  • DFARS 252.215-7002 Cost Estimating System Requirements.
    … for, the acceptability of the estimating system, including the budgetary data supporting indirect cost estimates and comparisons of projected results to actual results, and an analysis of any differences. (xiv) Provide procedures to updat…
  • FAR 3.104-1 Definitions.
    … commissions, professional fees, and any other form of compensation, provided directly or indirectly for services rendered. Compensation is indirectly provided if it is paid to an entity other than the individual, specifically in exchange f…
  • FAR 4.703 Policy.
    …es first. (3) The contractor does not meet the original due date for submission of final indirect cost rate proposals specified in paragraph (d)(2) of the clause at 52.216-7, Allowable Cost and Payment. Under these circumstances, the reten…
  • FAR 31.001 Definitions.
    …This term includes both direct assignment of cost and the reassignment of a share from an indirect cost pool. Compensated personal absence means any absence from work for reasons such as illness, vacation, holidays, jury duty, military tra…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …abor hours, rates, and cost by appropriate category, and furnish bases for estimates. C. Indirect Costs. Indicate how you have computed and applied your indirect costs, including cost breakdowns. Show trends and budgetary data to provide a…
  • FAR 16.601 Time-and-materials contracts.
    …ory specified in the contract, travel, computer usage charges, etc.); and (4) Applicable indirect costs. (b) Description. A time-and-materials contract provides for acquiring supplies or services on the basis of— (1) Direct labor hours a…

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.