FAR 16.402-3 Delivery incentives

Subsection Federal Acquisition Regulation

Facts

Citation
FAR 16.402-3
Type
Subsection
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) Delivery incentives should be considered when improvement from a required delivery schedule is a significant Government objective. It is important to determine the Government’s primary objectives in a given contract (e.g., earliest possible delivery or earliest quantity production).

(b) Incentive arrangements on delivery should specify the application of the reward-penalty structure in the event of Government-caused delays or other delays beyond the control, and without the fault or negligence, of the contractor or subcontractor.

Proposed changes

Proposed rule Published Comments
Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35 91 FR 59476 · FAR Case 2026-006, Docket No. FAR-2026-0006, Sequence No. 1 Closed Oct 19, 2026No final rule found

Quick answers

What is FAR 16.402-3?

FAR 16.402-3 is a subsection of the Federal Acquisition Regulation, titled "Delivery incentives".

Are changes to FAR 16.402-3 proposed?

One proposed change has no final rule yet.

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