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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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44 sections with “substantial reduction”: the first 40

  • DFARS 249.7003 Notification of anticipated contract terminations or reductions.
    … for employees of DoD contractors and subcontractors adversely affected by termination or substantial reductions in major defense programs. (b) Departments and agencies are responsible for establishing procedures to— (1) Identify which co…
  • DFARS 252.249-7002 Notification of Anticipated Contract Termination or Reduction.
    …yees of DoD contractors and subcontractors adversely affected by contract terminations or substantial reductions under major defense programs. (c) Notice to employees and state and local officials. (1) Within 2 weeks after the Contracting …
  • FAR 2.101 Definitions.
    …ng agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments. Commercial service means—…
  • FAR 7.107-3 Bundling.
    (a) Bundling may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition strategy that involves bundling, the agency shall make a written det…
  • FAR 52.232-12 Advance Payments.
    …se of business. (iii) The appointment of a trustee, receiver, or liquidator for all or a substantial part of the Contractor's property, or the institution of proceedings by or against the Contractor for bankruptcy, reorganization, arrangem…
  • FAR 7.107-2 Consolidation.
    (a) Consolidation may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total…
  • FAR 32.503-6 Suspension or reduction of payments.
    …s, the contracting officer shall— (i) Act fairly and reasonably; (ii) Base decisions on substantial evidence; and (iii) Document the contract file. Findings made under paragraph (c) of the Progress Payments clause shall be in writing. (…
  • FAR 52.232-16 Progress Payments.
    …ncrease the rate of liquidation, or take a combination of these actions, after finding on substantial evidence any of the following conditions: (1) The Contractor failed to comply with any material requirement of this contract (which inclu…
  • FAR 52.246-18 Warranty of Supplies of a Complex Nature.
    As prescribed in 46.710(b)(1), insert a clause substantially as follows: Warranty of Supplies of a Complex Nature (MAY 2001) (a) Definitions. As used in this clause— Acceptance means the act of an authorized representative of the Governm…
  • FAR 52.246-19 Warranty of Systems and Equipment under Performance Specifications or Design Criteria.
    As prescribed in 46.710(c)(1), the contracting officer may insert a clause substantially as follows: Warranty of Systems and Equipment Under Performance Specifications or Design Criteria (MAY 2001) (a) Definitions. As used in this clause—…
  • FAR 32.006-4 Procedures.
    (a) In any case in which an agency's remedy coordination official finds substantial evidence that a contractor's request for advance, partial, or progress payments under a contract awarded by that agency is based on fraud, the remedy coordi…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …e time after the defect was discovered or should have been discovered; and (2) before any substantial change occurs in the condition of the item, unless the change is due to the defect in the item. (b) Assignment. The Contractor or its ass…
  • FAR 52.212-3 Offeror Representations and Certifications—Commercial Products and Commercial Services.
    … sold or traded by the offeror (or subcontractor in the case of an exempt subcontract) in substantial quantities to the general public in the course of normal business operations; (ii) The services will be furnished at prices which are, or…
  • FAR 52.216-5 Price Redetermination—Prospective.
    … in this contract. If at any time it appears that the then-current billing prices will be substantially greater than the estimated final prices, or if the Contractor submits data showing that the redetermined price will be substantially gre…
  • FAR 52.216-6 Price Redetermination—Retroactive.
    … in this contract. If at any time it appears that the then-current billing prices will be substantially greater than the estimated final prices, or if the Contractor submits data showing that the redetermined prices will be substantially gr…
  • FAR 52.216-16 Incentive Price Revision—Firm Target.
    …e contractor under subparagraph (g)(2) below that the then-current billing prices will be substantially greater than the estimated final prices, the parties shall negotiate a reduction in the billing prices. Similarly, the parties may negot…
  • FAR 52.216-17 Incentive Price Revision—Successive Targets.
    …e contractor under subparagraph (i)(1) below that the then-current billing prices will be substantially greater than the estimated final prices, the parties shall negotiate a reduction in the billing prices. Similarly, the parties may negot…
  • FAR 52.227-11 Patent Rights—Ownership by the Contractor.
    …bject invention or produced through the use of the subject invention will be manufactured substantially in the United States. However, in individual cases, the requirement for an agreement may be waived by the agency upon a showing by the C…
  • FAR 52.227-13 Patent Rights—Ownership by the Government.
    …bject invention or produced through the use of the subject invention will be manufactured substantially in the United States. However, in individual cases, the requirement may be waived by the agency upon a showing by the Contractor or assi…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …on to believe that the total price to the Government for performing this contract will be substantially greater or less than the then stated ceiling price, the Contractor shall so notify the Contracting Officer, giving a revised estimate of…
  • FAR 52.246-3 Inspection of Supplies—Cost-Reimbursement.
    …tendents, or equivalent representatives who have supervision or direction of— (1) All or substantially all of the Contractor's business; (2) All or substantially all of the Contractor's operation at a plant or separate location where the …
  • FAR 52.246-8 Inspection of Research and Development—Cost-Reimbursement.
    …tendents, or equivalent representatives who have supervision or direction of— (1) All or substantially all of the Contractor's business; (2) All or substantially all of the Contractor's operation at any one plant or separate location wher…
  • DFARS 207.171-3 Policy.
    …nt without adequate price competition, the agency shall break out that component if— (1) Substantial net cost savings probably will be achieved; and (2) Breakout action will not jeopardize the quality, reliability, performance, or timely …
  • DFARS 215.404-71-2 Performance risk.
    …contracting officer may assign a higher than normal value in those cases where there is a substantial technical risk. Indicators are— (A) Items are being manufactured using specifications with stringent tolerance limits; (B) The efforts r…
  • DFARS 252.227-7038 Patent Rights—Ownership by the Contractor (Large Business).
    …bject invention or produced through the use of the subject invention will be manufactured substantially in the United States. However, in individual cases, the agency may waive the requirement for an exclusive license agreement upon a showi…
  • DFARS 252.235-7000 Indemnification Under 10 U.S.C. 3861—Fixed Price.
    …ts, or other equivalent representatives who have supervision or direction of— (i) All or substantially all of the Contractor's business; (ii) All or substantially all of the Contractor's operations at any one plant or separate location wh…
  • DFARS 252.235-7001 Indemnification Under 10 U.S.C. 3861—Cost Reimbursement.
    …ts, or other equivalent representatives who have supervision or direction of— (i) All or substantially all of the Contractor's business; (ii) All or substantially all of the Contractor's operations at any one plant or separate location wh…
  • FAR 15.404-4 Profit.
    …ertaking on time and at a predetermined price. Some firm-fixed-price contracts may entail substantially less cost risk than others because, for example, the contract task is less complex or many of the contractor's costs are known at the ti…
  • FAR 16.505 Ordering.
    …8-136 (40 U.S.C. 1103 note), orders placed under multi-agency contracts for services that substantially or to a dominant extent specify performance of architect-engineer services, as defined in 2.101, shall— (i) Be awarded using the proced…
  • FAR 17.105-2 Objectives.
    …Reduction of administrative burden in the placement and administration of contracts. (d) Substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses, and phaseou…
  • FAR 22.504 General requirements for project labor agreements.
    …) Market research indicates that requiring a project labor agreement on the project would substantially reduce the number of potential offerors to such a degree that adequate competition at a fair and reasonable price could not be achieved.…
  • FAR 31.205-17 Idle facilities and idle capacity costs.
    …es. Widespread idle capacity throughout an entire plant or among a group of assets having substantially the same function may be idle facilities. (d) Any costs to be paid directly by the Government for idle facilities or idle capacity rese…
  • FAR 32.006-1 General.
    …r suspension of further payments to a contractor when the agency head determines there is substantial evidence that the contractor's request for advance, partial, or progress payments is based on fraud. This authority does not apply to comm…
  • FAR 36.601-3 Applicable contracting procedures.
    …contracting officer shall follow the procedures in this subpart if the statement of work, substantially or to a dominant extent, specifies performance or approval by a registered or licensed architect or engineer. If the statement of work d…
  • FAR 36.602-1 Selection criteria.
    …d evaluation of conceptual designs; and (3) The design competition, with its costs, will substantially benefit the project.
  • FAR 49.304-1 General.
    … of any continued portion is only on subsidiary items or spare parts, or is otherwise not substantial. (b) In the case of the exceptions in paragraph (a), the procedures in 49.302 and 49.303 apply.
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    …k. The Contractor further certifies that the Contracting Officer has been informed of any substantial change in the status of the items between the dates of the termination inventory schedules and the date of this agreement. (4) The Contra…
  • FAR 49.603-2 Fixed-price contracts—partial termination.
    …k. The Contractor further certifies that the Contracting Officer has been informed of any substantial change in the status of the items between the dates of the termination inventory schedules and the date of this agreement. (5) The Contra…
  • FAR 49.603-3 Cost-reimbursement contracts—complete termination, if settlement includes cost.
    …k. The Contractor further certifies that the Contracting Officer has been informed of any substantial change in the status of the items between the dates of the termination inventory schedules and the date of this agreement. (4) The Contra…
  • FAR 52.222-50 Combating Trafficking in Persons.
    …tion of “commercial product” at Federal Acquisition Regulation (FAR) 2.101; (ii) Sold in substantial quantities in the commercial marketplace; and (iii) Offered to the Government, under a contract or subcontract at any tier, without modif…

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.