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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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53 sections with “lower costs”: the first 40

  • DFARS 252.216-7009 Allowability of Legal Costs Incurred in Connection with a Whistleblower Proceeding.
    … the following clause: Allowability of Legal Costs Incurred in Connection With a Whistleblower Proceeding (DEC 2022) Pursuant to 10 U.S.C. 3750, notwithstanding FAR clause 52.216-7, Allowable Cost and Payment— (a) The restrictions of FAR…
  • FAR 31.205-47 Costs related to legal and other proceedings.
    ….C. 4310 and 10 U.S.C. 3750); a contractor or subcontractor employee submitting a whistleblower complaint of reprisal in accordance with 41 U.S.C. 4712 or 10 U.S.C. 4701; or a third party in the name of the United States under the False Cla…
  • FAR 31.205-35 Relocation costs.
    … nonequity loans to employees or making arrangements with lenders for employees to obtain lower-than-market rate mortgage loans. (d) If relocation costs for an employee have been allowed either as an allocable indirect or direct cost, and …
  • FAR 52.242-4 Certification of Final Indirect Costs.
    …ve the certificate signed by an individual of the Contractor's organization at a level no lower than a vice president or chief financial officer of the business segment of the Contractor that submits the proposal. (b) Failure by the Contra…
  • FAR 16.401 General.
    …rice contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery or technical performance, by relating the amount of profit or fee payable under the cont…
  • FAR 17.105-2 Objectives.
    …ltiyear contracting is encouraged to take advantage of one or more of the following: (a) Lower costs. (b) Enhancement of standardization. (c) Reduction of administrative burden in the placement and administration of contracts. (d) Subst…
  • FAR 42.707 Cost-sharing rates and limitations on indirect cost rates.
    …e 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 contract for prospective …
  • FAR 52.215-22 Limitations on Pass-Through Charges—Identification of Subcontract Effort.
    …or proposed under the contract, task order, or delivery order intends to subcontract to a lower-tier subcontractor more than 70 percent of the total cost of work to be performed under its subcontract, the offeror shall identify in its propo…
  • FAR 2.101 Definitions.
    … performed for the Federal agency under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or (ii) Requirements of the Federal agency for construction project…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …d by the prospective source in support of each subcontract, or purchase order that is the lower of either $20 million or more, or both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime co…
  • FAR 52.215-23 Limitations on Pass-Through Charges.
    … the Contractor will provide added value; or (2) Any subcontractor changes the amount of lower-tier subcontractor effort after award such that it exceeds 70 percent of the total cost of the work to be performed under its subcontract. The n…
  • FAR 52.219-9 Small Business Subcontracting Plan.
    …de to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business cred…
  • DFARS 215.404-71-2 Performance risk.
    …ction concurrency. (3) Below normal conditions. (i) The contracting officer may assign a lower than normal value in those cases where the technical risk is low. Indicators are— (A) Requirements are relatively simple; (B) Technology is no…
  • DFARS 216.307 Contract clauses.
    …e the clause at 252.216-7009, Allowability of Costs Incurred in Connection With a Whistleblower Proceeding— (1) In task orders entered pursuant to contracts awarded before September 30, 2013, that include the clause at FAR 52.216-7, Allowa…
  • DFARS 252.242-7004 Material Management and Accounting System.
    …l provide adequate evidence that— (A) There is no material harm to the Government due to lower accuracy levels; and (B) The cost to meet the accuracy goals is excessive in relation to the impact on the Government; (3) Provide a mechanism…
  • FAR 3.104-1 Definitions.
    …ct; (3) Any multiple award schedule contract, unless the contracting officer documents a lower estimate; (4) The value of a delivery order, task order, or an order under a Basic Ordering Agreement; (5) The amount paid or to be paid in se…
  • FAR 15.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
    …aving been required to provide certified cost or pricing data. Consequently, award of any lower-tier subcontract expected to exceed the certified cost or pricing data threshold requires the submission of certified cost or pricing data unles…
  • FAR 15.404-3 Subcontract pricing considerations.
    …ractor(s), certified cost or pricing data to the Government for subcontracts that are the lower of either— (i) $20 million or more; or (ii) Both more than the pertinent certified cost or pricing data threshold and more than 10 percent of …
  • FAR 15.407-1 Defective certified cost or pricing data.
    …defective subcontract data in arriving at the price but later awards the subcontract to a lower priced subcontractor (or does not subcontract for the work), any adjustment in the prime contract price due to defective subcontract data is lim…
  • FAR 22.103-2 Policy.
    …cable, without using overtime, particularly as a regular employment practice, except when lower overall costs to the Government will result or when it is necessary to meet urgent program needs. Any approved overtime, extra-pay shifts, and m…
  • FAR 22.406-2 Wages, fringe benefits, and overtime.
    …payment of cash equivalents for fringe benefits. Overtime shall not be computed on a rate lower than the basic hourly rate in the wage determination.
  • FAR 31.603 Requirements.
    …ing its agents or employees); a contractor or subcontractor employee submitting a whistleblower complaint of reprisal in accordance with 41 U.S.C. 4712 or 10 U.S.C. 4701; or a third party in the name of the United States under the False Cla…
  • FAR 32.005 Consideration for contract financing.
    …tractor is expected to be reflected in either (1) A bid or negotiated price that will be lower than such price would have been in the absence of the contract financing, or (2) Contract terms and conditions, other than price, that are more…
  • FAR 32.206 Solicitation provisions and contract clauses.
    … Commercial Services, either at the 70 percent financing rate cited in the clause or at a lower rate in accordance with agency procedures. (3) Calculating the amount of installment financing payments. The contracting officer shall identify…
  • FAR 32.503-9 Liquidation rates—alternate method.
    … increased for both previous and subsequent transactions, if the contractor experiences a lower profit rate than the rate anticipated at the time the liquidation rate was established. Accordingly, the contracting officer shall adjust the pr…
  • FAR 36.214 Special procedures for price negotiation in construction contracting.
    …uipment allowances, and subcontractor costs). (2) When a proposed price is significantly lower than the Government estimate, the contracting officer shall make sure both the offeror and the Government estimator completely understand the sc…
  • FAR 41.205 Separate contracts.
    …required, where any of the following circumstances exist: (1) The Government will obtain lower rates, larger discounts, or more favorable terms and conditions of service; (2) A proposed connection charge, termination liability, or any oth…
  • FAR 47.104-3 Cost-reimbursement contracts.
    …mercial Bill of Lading Notations, will ensure that the Government receives the benefit of lower 49 U.S.C. 10721 and 13712 rates in cost-reimbursement contracts as described in paragraphs (a) and (b) of this section. (d) Contracting officer…
  • FAR 47.303-17 Contractor-prepaid commercial bills of lading, small package shipments.
    … Government shipments with its own shipments so that the Government can take advantage of lower carload or truckload freight costs. The Government shall assume its pro rata share of the combined shipment cost. Agency transportation personne…
  • FAR 47.304-1 General.
    …dvantageous to the Government, the contracting officer shall consider the availability of lower freight rates (Government rate tenders) to the Government for f.o.b. origin acquisitions. F.o.b. origin contracts also present other desirable t…
  • FAR 47.304-3 Shipments from CONUS for overseas delivery.
    …NUS to overseas destinations, delivery f.o.b. origin may afford not only the economies of lower freight rates available to the Government within CONUS, but also flexibility for selection of (1) the port of export and (2) the ocean transport…
  • FAR 47.305-7 Quantity analysis, direct delivery, and reduction of crosshauling and backhauling.
    …ies. (2) When additional quantities of the supplies being acquired can be transported at lower unit transportation costs or with a relatively small increase in total transportation costs, with no impairment to the program schedule, the con…
  • FAR 47.305-8 Consolidation of small shipments and the use of stopoff privileges.
    … small shipments. Consolidation of small shipments into larger lots frequently results in lower transportation costs. Therefore, the contracting officer, after consultation with the transportation office and the activity requiring the suppl…
  • FAR 47.305-13 Transit arrangements.
    …nt to the Government destination, because they are based on through rates, are frequently lower than the transportation charges that would apply for the same tonnage if the intermediate point were the initial origin point. (2) If transit c…
  • FAR 48.101 General.
    …. All other contracts with a program clause share in savings on accepted VECP's, but at a lower percentage rate than under the voluntary approach. The objective of this value engineering program requirement is to ensure that the contractor'…
  • FAR 52.204-2 Security Requirements.
    …y classification of this contract or any of its elements from an unclassified status or a lower classification to a higher classification, or (2) in more restrictive area controls than previously required, the Contractor shall exert every r…
  • FAR 52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).
    …plement provisions of law or Executive order: (i) 52.203-17, Contractor Employee Whistleblower Rights (NOV 2023) (41 U.S.C. 4712); this clause does not apply to contracts of DoD, NASA, the Coast Guard, or applicable elements of the intelli…
  • FAR 52.222-2 Payment for Overtime Premiums.
    … and cannot reasonably be interrupted or completed otherwise; or (4) That will result in lower overall costs to the Government. (b) Any request for estimated overtime premiums that exceeds the amount specified above shall include all esti…
  • FAR 52.230-1 Cost Accounting Standards Notices and Certification.
    … Statement—Cost Accounting Practices and Certification (a) Any contract in excess of the lower CAS threshold specified in Federal Acquisition Regulation (FAR) 30.201-4(b) resulting from this solicitation will be subject to the requirements…
  • FAR 52.230-2 Cost Accounting Standards.
    …e inserted. This requirement shall apply only to negotiated subcontracts in excess of the lower CAS threshold specified in FAR 30.201-4(b) on the date of subcontract award, except that the requirement shall not apply to negotiated subcontra…

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.