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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13 sections with “sharing of savings”

  • FAR 48.104-2 Sharing acquisition savings.
    (a) Supply or service contracts. (1) The sharing base for acquisition savings is the number of affected end items on contracts of the contracting office accepting the VECP. The sharing rates (Government/contractor) for net acquisition savin…
  • FAR 48.104-1 Determining sharing period.
    (a) Contracting officers must determine discrete sharing periods for each VECP. If more than one VECP is incorporated into a contract, the sharing period for each VECP need not be identical. (b) The sharing period begins with acceptance of…
  • FAR 48.104-3 Sharing collateral savings.
    …e the VECP is accepted; or (2) $100,000. (c) The contracting officer must determine the sharing rate for each VECP. (d) In determining collateral savings, the contracting officer must consider any degradation of performance, service life…
  • FAR 48.001 Definitions.
    …f the future unit cost reduction multiplied by the number of future contract units in the sharing base. On an instant contract, future contract savings include savings on increases in quantities after VECP acceptance that are due to contrac…
  • FAR 48.102 Policies.
    …lculating instant or future contract savings. (g) The contracting officer determines the sharing periods and sharing rates on a case-by-case basis using the guidelines in 48.104-1 and 48.104-2, respectively. In establishing a sharing perio…
  • FAR 48.201 Clauses for supply or service contracts.
    … is accepted;” for “the number of future contract units scheduled for delivery during the sharing period;” and (2) Revising the first sentence under paragraph (3) of the definition of “acquisition savings” by substituting “a number equal t…
  • FAR 52.248-1 Value Engineering.
    …y net acquisition savings realized from accepted VECP's, in accordance with the incentive sharing rates in paragraph (f) below. (b) Definitions. Acquisition savings, as used in this clause, means savings resulting from the application of a…
  • FAR 48.101 General.
    …lop and submit any value engineering change proposals (VECP's). The contract provides for sharing of savings and for payment of the contractor's allowable development and implementation costs only if a VECP is accepted. This voluntary appro…
  • FAR 48.103 Processing value engineering change proposals.
    …rmination of collateral costs or collateral savings. (3) The decision as to which of the sharing rates applies when Alternate II of the clause at 52.248-1, Value Engineering, is used. (4) The contracting officer's determination of the dur…
  • FAR 48.104-4 Sharing alternative—no-cost settlement method.
    In selecting an appropriate mechanism for incorporating a VECP into a contract, the contracting officer shall analyze the different approaches available to determine which one would be in the Government's best interest. Contracting officers…
  • FAR 2.101 Definitions.
    … (3) Are consistent with the various elements of the offeror's technical proposal. Cost sharing means an explicit arrangement under which the contractor bears some of the burden of reasonable, allocable, and allowable contract cost. Cove…
  • FAR 31.205-6 Compensation for personal services.
    …ans. In addition to defined-contribution pension plans, this paragraph also covers profit sharing, savings plans, and other such plans, provided the plans fall within the definition of a pension plan at 31.001. (i) Allowable pension cost i…
  • FAR 52.248-3 Value Engineering—Construction.
    …P is a unilateral decision made solely at the discretion of the Contracting Officer. (f) Sharing—(1) Rates. The Government's share of savings is determined by subtracting Government costs from instant contract savings and multiplying the r…

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.