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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14 sections with “reasonable allowance for profit”

  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    …t to be paid or remaining to be paid because of the termination. The amount may include a reasonable allowance for profit on work done. However, the agreed amount, whether under this paragraph (f) or paragraph (g) of this clause, exclusive …
  • FAR 52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).
    …or any part of the amount to be paid because of the termination. The amount may include a reasonable allowance for profit on work done. However, the agreed amount, whether under this paragraph (f) or paragraph (g) of this clause, exclusive …
  • FAR 31.205-6 Compensation for personal services.
    … (2) The total compensation for individual employees or job classes of employees must be reasonable for the work performed; however, specific restrictions on individual compensation elements apply when prescribed. (3) The compensation mus…
  • FAR 15.404-1 Proposal analysis techniques.
    …he 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 techniques and procedu…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …vide data showing the degree of competition and the basis for establishing the source and reasonableness of price for those acquisitions (such as subcontracts, purchase orders, material order, etc.) exceeding, or expected to exceed, the app…
  • FAR 52.216-7 Allowable Cost and Payment.
    …r may submit to an authorized representative of the Contracting Officer, in such form and reasonable detail as the representative may require, an invoice or voucher supported by a statement of the claimed allowable cost for performing this …
  • FAR 52.232-12 Advance Payments.
    …ithdraw funds from the special account only to pay for properly allocable, allowable, and reasonable costs for direct materials, direct labor, and indirect costs. Other withdrawals require approval in writing by the administering office. De…
  • FAR 49.201 General.
    …k done and the preparations made for the terminated portions of the contract, including a reasonable allowance for profit. Fair compensation is a matter of judgment and cannot be measured exactly. In a given case, various methods may be equ…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    …act before the effective date of the termination, and those costs that may continue for a reasonable time with the approval of or as directed by the Contracting Officer; however, the Contractor shall discontinue these costs as rapidly as pr…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …unts are not susceptible of exact statement by the Contractor. (2) Claims, together with reasonable incidental expenses, based upon the liabilities of the Contractor to third parties arising out of performing this contract, that are not kn…
  • DFARS 252.217-7012 Liability and insurance.
    …by the Government under this clause, the Government will reimburse the Contractor for the reasonable, allowable cost of the replacement or repair, plus a reasonable profit (if the work or replacement or repair was performed by the Contracto…
  • FAR 15.407-1 Defective certified cost or pricing data.
    …portunity for corrective action, the contracting officer should give the prime contractor reasonable advance notice before determining to reduce the prime contract price. (1) When a prime contractor includes defective subcontract data in a…
  • FAR 31.105 Construction and architect-engineer contracts.
    …eed an amount for standby cost as determined by the schedule or contract provision. (ii) Reasonable costs of renting construction equipment are allowable (but see paragraph (C) below). (A) Costs, such as maintenance and minor or running r…
  • FAR 42.705-1 Contracting officer determination procedure.
    …he expiration of each of its fiscal years. The contracting officer may grant, in writing, reasonable extensions, for exceptional circumstances only, when requested in writing by the contractor. (iii) Upon receipt of the proposal— (A) The …

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.