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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10 sections with “performance or delivery incentives”

  • DFARS 215.404-71-3 Contract type risk and working capital adjustment.
    … (1) “No financing” means either that the contract does not provide progress payments or performance-based payments, or that the contract provides them only on a limited basis, such as financing of first articles. Do not compute a working …
  • FAR 11.501 Policy.
    …ges clause. Use liquidated damages clauses only when— (1) The time of delivery or timely performance is so important that the Government may reasonably expect to suffer damage if the delivery or performance is delinquent; and (2) The exte…
  • FAR 15.203 Requests for proposals.
    …e alternative line items on other terms and conditions or the requirement (e.g., place of performance or payment and funding requirements) (see 15.206); (3) Information required to be in the offeror's proposal; and (4) Factors and signifi…
  • FAR 16.401 General.
    …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 contract to the contractor's performance. Incentive contracts are designed to o…
  • FAR 16.203-1 Description.
    …ified costs of labor or material that the contractor actually experiences during contract performance. (3) Adjustments based on cost indexes of labor or material. These price adjustments are based on increases or decreases in labor or mate…
  • FAR 52.248-1 Value Engineering.
    …stablished. Instant unit cost reduction means the amount of the decrease in unit cost of performance (without deducting any Contractor's development or implementation costs) resulting from using the VECP on this, the instant contract. If t…
  • FAR 12.207 Contract type.
    …ontract types authorized 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…
  • FAR 16.202-1 Description.
    …e a firm-fixed-price contract 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 other than cost. The contrac…
  • FAR 16.403 Fixed-price incentive contracts.
    …st responsibility will provide a positive profit incentive for effective cost control and performance; and (3) If the contract also includes incentives on technical performance and/or delivery, the performance requirements provide a reason…
  • FAR 52.244-2 Subcontracts.
    …d in FAR Subpart 2.1, entered into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase ord…

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.