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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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25 sections with “target fee”

  • FAR 16.405-1 Cost-plus-incentive-fee contracts.
    …e adjusted later by a formula based on the relationship of total allowable costs to total target costs. This contract type specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. After contract perform…
  • FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity.
    …ed in the contract at the time of award; (2) For cost-plus-incentive-fee conrtracts, the target fee specified in the contract at the time of award, notwithstanding any minimum fee or “fee floor” specified in the contract. (3) For cost-plu…
  • FAR 52.216-10 Incentive Fee.
    …ntractor for performing this contract a fee determined as provided in this contract. (b) Target cost and target fee. The target cost and target fee specified in the Schedule are subject to adjustment if the contract is modified in accordan…
  • FAR 49.115 Settlement of terminated incentive contracts.
    …the provisions of paragraph (j) of the clause at 52.216-16, Incentive Price Revision—Firm Target, and 52.249-2, Termination for Convenience of the Government (Fixed-Price). (1) Partial termination. Under a partially terminated contract, th…
  • FAR 16.306 Cost-plus-fixed-fee contracts.
    … term. (1) The completion form describes the scope of work by stating a definite goal or target and specifying an end product. This form of contract normally requires the contractor to complete and deliver the specified end product (e.g., …
  • FAR 16.401 General.
    …to obtain specific acquisition objectives by— (1) Establishing reasonable and attainable targets that are clearly communicated to the contractor; and (2) Including appropriate incentive arrangements designed to (i) motivate contractor eff…
  • FAR 16.402-1 Cost incentives.
    …Except for award-fee contracts (see 16.404 and 16.401 (e)), incentive contracts include a target cost, a target profit or fee, and a profit or fee adjustment formula that (within the constraints of a price ceiling or minimum and maximum fee…
  • FAR 52.248-1 Value Engineering.
    …tant contract items affected. Any negative instant contract savings shall be added to the target cost or to the target price and ceiling price, and the amount shall be offset against concurrent and future contract savings. (4) If the Gover…
  • FAR 16.304 Cost-plus-incentive-fee contracts.
    …e adjusted later by a formula based on the relationship of total allowable costs to total target costs. Cost-plus-incentive-fee contracts are covered in subpart 16.4, Incentive Contracts. See 16.405-1 for a more complete description and dis…
  • FAR 16.406 Contract clauses.
    (a) Insert the clause at 52.216-16, Incentive Price Revision—Firm Target, in solicitations and contracts when a fixed-price incentive (firm target) contract is contemplated. If the contract calls for supplies or services to be ordered under…
  • DFARS 216.405-2 Cost-plus-award-fee contracts.
    …s when the criteria for cost-plus-fixed-fee contracts apply; or (2) Developing objective targets so a cost-plus-incentive-fee contract can be used; or (B) For either engineering development or operational system development acquisitions t…
  • FAR 22.103-5 Contract clauses.
    …ontemplated, or (b) a cost-plus-incentive-fee contract that will provide a swing from the target fee of at least plus or minus 3 percent and a contractor's share of at least 10 percent is contemplated.
  • FAR 52.226-1 Utilization of Indian Organizations and Indian-Owned Economic Enterprises.
    …tive Program to the following: (i) The estimated cost of a cost-type contract. (ii) The target cost of a cost-plus-incentive-fee prime contract. (iii) The target cost and ceiling price of a fixed-price incentive prime contract. (iv) The…
  • DFARS 252.246-7001 Warranty of data.
    …tional liability under paragraph (d)(3) of this clause shall not exceed 75 percent of the target profit. (ii) If the breach of the warranty is with respect to the data supplied by an equipment subcontractor, the limit of the Contractor's l…
  • FAR 16.402-2 Performance incentives.
    …ed to relate profit or fee to results achieved by the contractor, compared with specified targets. (b) To the maximum extent practicable, positive and negative performance incentives shall be considered in connection with service contracts…
  • FAR 48.104-2 Sharing acquisition savings.
    …contracts, the contracting officer 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 concurre…
  • FAR 52.215-9 Changes or Additions to Make-or-Buy Program.
    … the contract price in accordance with paragraph (k) of the Incentive Price Revision—Firm Target clause or paragraph (m) of the Incentive Price Revision—Successive Targets clause of this contract. Alternate II (OCT 2010). As prescribed in …
  • FAR 52.216-25 Contract Definitization.
    …5-2, supporting its proposal. (b) The schedule for definitizing this contract is [insert target date for definitization of the contract and dates for submission of proposal, beginning of negotiations, and, if appropriate, submission of mak…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    … (i) Estimated increased cost accumulations are the basis for increasing contract prices, target prices and cost ceilings; and (ii) Estimated decreased cost accumulations are the basis for decreasing contract prices, target prices and cost…
  • DFARS 252.217-7027 Contract Definitization.
    …qualifying. (c) The schedule for definitizing this contract action is as follows [insert target date for definitization of the contract action and dates for submission of proposal, beginning of negotiations, and, if appropriate, submission…
  • FAR 1.102-3 Evaluating agency acquisition processes.
    …survey questions at https://www.acquisition.gov/360; and (3) Seek additional feedback on targeted aspects of an acquisition throughout its lifecycle (e.g., performance standards at 1.102-2 or postaward contract administration responsibilit…
  • FAR 16.603-2 Application.
    …make-or-buy and subcontracting plans, (2) a date for the start of negotiations, and (3) a target date for definitization, which shall be the earliest practicable date for definitization. The schedule will provide for definitization of the c…
  • FAR 31.205-38 Selling costs.
    …2) Corporate image enhancement. Corporate image enhancement activities, including broadly targeted sales efforts, other than advertising, are included within the definition of public relations at 31.205-1(a), and the costs of such efforts a…
  • FAR 32.703-1 General.
    (a) If the contract is fully funded, funds are obligated to cover the price or target price of a fixed-price contract or the estimated cost and any fee of a cost-reimbursement contract. (b) If the contract is incrementally funded, funds ar…
  • DFARS 244.305-70 Policy.
    …proposal; (ii) Considering another type of contract, e.g., a fixed-price incentive (firm target) contract instead of firm-fixed-price; (iii) Using additional cost analysis techniques to determine the reasonableness of the cost elements af…

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.