FAR 16.303 — Cost-sharing contracts

Regulatory text. Not legal advice.

(a)

(a) Description. A cost-sharing contract is a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs.

(b)

(b) Application. A cost-sharing contract may be used when the contractor agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits.

(c)

(c) Limitations. See FAR 16.301-3.


Source: eCFR • Pulled 2026-04-16