FAR 16.202-1 Description
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 16.202-1
- Type
- Subsection
- Last amended
- 68 FR 13201 Effective Apr 17, 2003
- Proposed changes
- 1
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss. It provides maximum incentive for the contractor to control costs and perform effectively and imposes a minimum administrative burden upon the contracting parties. The contracting officer may use a firm-fixed-price contract in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors other than cost. The contract type remains firm-fixed-price when used with these incentives.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulation; Contract Types for Commercial Item Acquisitions |
Proposed changes
| Proposed rule | Published | Comments |
|---|---|---|
| Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35 | Closed Oct 19, 2026No final rule found |
Sections cited
- FAR 16.404 Fixed-price contracts with award fees
- FAR 16.402-2 Performance incentives
- FAR 16.402-3 Delivery incentives
Quick answers
What is FAR 16.202-1?
FAR 16.202-1 is a subsection of the Federal Acquisition Regulation, titled "Description".
When was FAR 16.202-1 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; Contract Types for Commercial Item Acquisitions" (68 FR 13201), published Mar 18, 2003 and effective Apr 17, 2003.
Are changes to FAR 16.202-1 proposed?
One proposed change has no final rule yet.
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