FAR 16.404 Fixed-price contracts with award fees
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 16.404
- Type
- Section
- Last amended
- 74 FR 52856 Effective Oct 14, 2009
- 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
Award-fee provisions may be used in fixed-price contracts when the Government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively. Such contracts shall establish a fixed price (including normal profit) for the effort. This price will be paid for satisfactory contract performance. Award fee earned (if any) will be paid in addition to that fixed price. See 16.401(e) for the requirements relative to utilizing this contract type.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulation; FAR Case 2008-008, Award Fee Language Revision |
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 16.401(e) General
Quick answers
What is FAR 16.404?
FAR 16.404 is a section of the Federal Acquisition Regulation, titled "Fixed-price contracts with award fees".
When was FAR 16.404 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; FAR Case 2008-008, Award Fee Language Revision" (74 FR 52856), published Oct 14, 2009 and effective Oct 14, 2009.
Are changes to FAR 16.404 proposed?
One proposed change has no final rule yet.
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