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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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78 sections with “price reduction”: the first 40

  • FAR 52.214-27 Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding.
    As prescribed in 14.201-7(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding (JUN 2020) (a) This clause shall become operative only for any modification to this contr…
  • FAR 52.215-10 Price Reduction for Defective Certified Cost or Pricing Data.
    As prescribed in 15.408(b), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data (AUG 2011) (a) If any price, including profit or fee, negotiated in connection with this contract, or any cost reimbursa…
  • FAR 52.215-11 Price Reduction for Defective Certified Cost or Pricing Data—Modifications.
    As prescribed in 15.408(c), insert the following clause: Price Reduction for Defective Certified Cost or Pricing Data—Modifications (JUN 2020) (a) This clause shall become operative only for any modification to this contract involving a p…
  • FAR 8.405-4 Price reductions.
    Ordering activities may request a price reduction at any time before placing an order, establishing a BPA, or in conjunction with the annual BPA review. However, the ordering activity shall seek a price reduction when the order or BPA excee…
  • FAR 32.503-11 Adjustments for price reduction.
    (a) If a retroactive downward price reduction occurs under a redeterminable contract that provides for progress payments, the contracting officer shall— (1) Determine the refund due and obtain repayment from the contractor for the excess o…
  • FAR 52.246-2 Inspection of Supplies—Fixed-Price.
    As prescribed in 46.302, insert the following clause: Inspection of Supplies—Fixed-Price (AUG 1996) (a) Definition. Supplies, as used in this clause, includes but is not limited to raw materials, components, intermediate assemblies, end p…
  • FAR 52.246-7 Inspection of Research and Development—Fixed-Price.
    … in 46.307(a), insert the following clause: Inspection of Research and Development—Fixed-Price (AUG 1996) (a) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the work under this contrac…
  • FAR 49.603-2 Fixed-price contracts—partial termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts partially terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated __________________. …
  • FAR 32.503-6 Suspension or reduction of payments.
    …ct plus the estimated costs to complete the performance are likely to exceed the contract price, the contracting officer shall compute a loss ratio factor and adjust future progress payments to exclude the element of loss. The loss ratio fa…
  • FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity.
    As prescribed in 3.104-9(b) insert the following clause: Price or Fee Adjustment for Illegal or Improper Activity (MAY 2014) (a) The Government, at its election, may reduce the price of a fixed-price type contract and the total cost and f…
  • FAR 52.216-5 Price Redetermination—Prospective.
    As prescribed in 16.205-4, insert the following clause: Price Redetermination—Prospective (JAN 2022) (a) General. The unit prices and the total price stated in this contract shall be periodically redetermined in accordance with this claus…
  • FAR 52.216-6 Price Redetermination—Retroactive.
    As prescribed in 16.206-4, insert the following clause: Price Redetermination—Retroactive (JAN 2022) (a) General. The unit price and the total price stated in this contract shall be redetermined in accordance with this clause, but in no e…
  • FAR 52.216-16 Incentive Price Revision—Firm Target.
    As prescribed in 16.406(a), insert the following clause: Incentive Price Revision—Firm Target (JAN 2022) (a) General. The supplies or services identified in the Schedule as Items ___ [Contracting Officer insert Schedule line item numbers]…
  • FAR 52.216-17 Incentive Price Revision—Successive Targets.
    As prescribed in 16.406(b), insert the following clause: Incentive Price Revision—Successive Targets (JAN 2022) (a) General. The supplies or services identified in the Schedule as Items ___ [Contracting Officer insert line item numbers] a…
  • FAR 52.229-6 Taxes—Foreign Fixed-Price Contracts.
    As prescribed in 29.402-1(a), insert the following clause: Taxes—Foreign Fixed-Price Contracts (FEB 2013) (a) To the extent that this contract provides for furnishing supplies or performing services outside the United States and its outly…
  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    …1)(i), insert the following clause: Termination for Convenience of the Government (Fixed-Price) (APR 2012) (a) The Government may terminate performance of work under this contract in whole or, from time to time, in part if the Contracting…
  • FAR 7.107-3 Bundling.
    …3)(vii)). (c) Such benefits may include, but are not limited to— (1) Cost savings; (2) Price reduction; (3) Quality improvements that will save time or improve or enhance performance or efficiency; (4) Reduction in acquisition cycle ti…
  • FAR 8.405-3 Blanket purchase agreements (BPAs).
    …hat can provide the supply or service that represents the best value. (2) In addition to price (see 8.404(d) and 8.405-4), when determining best value, the ordering activity may consider, among other factors, the following: (i) Past perfo…
  • FAR 15.402 Pricing policy.
    …hall— (a) Purchase supplies and services from responsible sources at fair and reasonable prices. In establishing the reasonableness of the offered prices, the contracting officer— (1) Shall obtain certified cost or pricing data when requi…
  • FAR 15.407-1 Defective certified cost or pricing data.
    (a) If, before agreement on price, the contracting officer learns that any certified cost or pricing data submitted are inaccurate, incomplete, or noncurrent, the contracting officer shall immediately bring the matter to the attention of th…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …alue, 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 De…
  • FAR 32.601 General.
    …act. (b) Contract debts include, but are not limited to, the following: (1) Billing and price reductions resulting from contract terms for price redetermination or for determination of prices under incentive type contracts. (2) Price or …
  • FAR 48.104-2 Sharing acquisition savings.
    …ficer shall add any negative instant contract savings to the target cost or to the target price and ceiling price and then offset these negative instant contract savings and any Government costs against concurrent and future contract saving…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts completely terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated ____________________…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …conforming supplies or reperformance of nonconforming services at no increase in contract price. If repair/replacement or reperformance will not correct the defects or is not possible, the Government may seek an equitable price reduction or…
  • FAR 52.215-23 Limitations on Pass-Through Charges.
    …g Officer determines that excessive pass-through charges exist; (1) For other than fixed-price contracts, the excessive pass-through charges are unallowable in accordance with the provisions in FAR subpart 31.2; and (2) For applicable DoD…
  • FAR 52.232-12 Advance Payments.
    …ce payments, unpaid interest charges, and other payments exceed _ percent of the contract price, the Government shall withhold further payments to the Contractor. On completion or termination of the contract, the Government shall deduct fro…
  • FAR 52.248-3 Value Engineering—Construction.
    …ge to this, the instant contract, to implement; and (2) Results in reducing the contract price or estimated cost without impairing essential functions or characteristics; provided, that it does not involve a change— (i) In deliverable end…
  • FAR 52.232-16 Progress Payments.
    …) The total amount of progress payments shall not exceed 80 percent of the total contract price. (7) If a progress payment or the unliquidated progress payments exceed the amounts permitted by subparagraphs (a)(4) or (a)(5) above, the Cont…
  • DFARS 252.235-7000 Indemnification Under 10 U.S.C. 3861—Fixed Price.
    …ribed in 235.070-3, use the following clause: Indemnification Under 10 U.S.C. 3861—Fixed Price (DEC 2022) (a) This clause provides for indemnification under 10 U.S.C. 3861 if the Contractor meets all the terms and conditions of this claus…
  • FAR 2.101 Definitions.
    …bstantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these serv…
  • FAR 15.403-4 Requiring certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
    … circumstances exist and has sufficient data available to determine a fair and reasonable price, then the contracting officer should consider requesting a waiver under the exception at 15.403-1(b)(4). The threshold for obtaining certified c…
  • FAR 15.404-1 Proposal analysis techniques.
    (a) General. The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable. (1) The contracting officer is responsible for evaluating the reasonableness of the offered prices. The analytical techniqu…
  • FAR 15.404-4 Profit.
    … for establishing the profit or fee portion of the Government prenegotiation objective in price negotiations based on cost analysis. (1) Profit or fee prenegotiation objectives do not necessarily represent net income to contractors. Rather…
  • FAR 15.407-2 Make-or-buy programs.
    …tractor's make-or-buy program when necessary to ensure negotiation of reasonable contract prices, satisfactory performance, or implementation of socioeconomic policies. Consent to subcontracts and review of contractors' purchasing systems a…
  • FAR 16.505 Ordering.
    …rly describe all services to be performed or supplies to be delivered so the full cost or price for the performance of the work can be established when the order is placed. Orders shall be within the scope, issued within the period of perfo…
  • FAR 32.503-9 Liquidation rates—alternate method.
    …te method is to permit the contractor to retain the earned profit element of the contract prices for completed items in the liquidation process. The contracting officer may reduce the liquidation rate if— (1) The contractor requests a redu…
  • FAR 46.407 Nonconforming supplies or services.
    …e Government. Subparagraph (e)(2) of the clause at 52.246-2, Inspection of Supplies—Fixed-Price, reserves to the Government the right to charge the contractor the cost of Government reinspection and retests because of prior rejection. (c)(…
  • FAR 48.001 Definitions.
    …nd implementation costs; (2) Concurrent contract savings, that are net reductions in the prices of other contracts that are definitized and ongoing at the time the VECP is accepted; and (3) Future contract savings, that are the product of…
  • FAR 52.204-8 Annual Representations and Certifications.
    …siness and has a value above the simplified acquisition threshold; (ii) Uses the HUBZone price evaluation preference regardless of dollar value, unless the offeror waives the price evaluation preference; or (iii) Is an 8(a), HUBZone, serv…

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.