FAR 16.301-3 Limitations
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 16.301-3
- Type
- Subsection
- Last amended
- 86 FR 61017 Effective Dec 6, 2021
- 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) A cost-reimbursement contract may be used only when **
(1) The factors in 16.104 have been considered;
(2) A written acquisition plan has been approved and signed at least one level above the contracting officer;
(3) The contractor’s accounting system is adequate for determining costs applicable to the contract or order; and
(4) Prior to award of the contract or order, adequate Government resources are available to award and manage a contract other than firm-fixed-priced (see 7.104(e)). This includes appropriate Government surveillance during performance in accordance with 1.602-2, to provide reasonable assurance that efficient methods and effective cost controls are used.
(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial products and commercial services (see parts 2 and 12).
Federal Register history
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 16.104 Factors in selecting contract types
- FAR 7.104(e) General procedures
- FAR 1.602-2 Responsibilities
- FAR Part 2 Definitions of Words and Terms
- FAR Part 12 Acquisition of Commercial Products and Commercial Services
Quick answers
What is FAR 16.301-3?
FAR 16.301-3 is a subsection of the Federal Acquisition Regulation, titled "Limitations".
When was FAR 16.301-3 last changed?
The most recent final rule on record is "Federal Acquisition Regulation: Revision of Definition of “Commercial Item”" (86 FR 61017), published Nov 4, 2021 and effective Dec 6, 2021.
Are changes to FAR 16.301-3 proposed?
One proposed change has no final rule yet.
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