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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10 sections with “target profit or fee”

  • 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 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 52.226-1 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…
  • 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 16.402-2 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 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…
  • 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 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 52.230-6 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 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.