FAR 16.204 Fixed-price incentive contracts
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 16.204
- Type
- Section
- 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 section.
Text
A fixed-price incentive contract is a fixed-price contract that provides for adjusting profit and establishing the final contract price by a formula based on the relationship of final negotiated total cost to total target cost. Fixed-price incentive contracts are covered in subpart 16.4, Incentive Contracts. See 16.403 for more complete descriptions, application, and limitations for these contracts. Prescribed clauses are found at 16.406.
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 Subpart 16.4 Incentive Contracts
- FAR 16.403 Fixed-price incentive contracts
- FAR 16.406 Contract clauses
Quick answers
What is FAR 16.204?
FAR 16.204 is a section of the Federal Acquisition Regulation, titled "Fixed-price incentive contracts".
Are changes to FAR 16.204 proposed?
One proposed change has no final rule yet.
On GovTribe
Follow the rules behind federal contracts
- Search Federal Register rules and proposed rules for the FAR, DFARS and agency supplements
- Solicitations, awards and government files in one search
- Ask GovTribe AI about the rules that apply to a contract