FAR 16.405-2 Cost-plus-award-fee contracts
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 16.405-2
- Type
- Subsection
- Last amended
- 74 FR 52856 Effective Oct 14, 2009
- 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 cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (1) a base amount fixed at inception of the contract, if applicable and at the discretion of the contracting officer, and (2) an award amount that the contractor may earn in whole or in part during performance and that is sufficient to provide motivation for excellence in the areas of cost, schedule, and technical performance. 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 |
Sections cited
- FAR 16.401(e) General
Quick answers
What is FAR 16.405-2?
FAR 16.405-2 is a subsection of the Federal Acquisition Regulation, titled "Cost-plus-award-fee contracts".
When was FAR 16.405-2 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 16.405-2 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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