FAR 16.305 — Cost-plus-award-fee contracts
Regulatory text. Not legal advice.
A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (a) a base amount (which may be zero) fixed at inception of the contract and (b) an award amount, based upon a judgmental evaluation by the Government, sufficient to provide motivation for excellence in contract performance. Cost-plus-award-fee contracts are covered in FAR Subpart 16.4, Incentive Contracts. See FAR 16.401(e) for a more complete description and discussion of the application of these contracts. See FAR 16.301-3 and FAR 16.401(e)(5) for limitations.
Citation history: [48 FR 42219, Sept. 19, 1983, as amended at 62 FR 12695, Mar. 17, 1997; 74 FR 52858, Oct. 14, 2009]
Source: eCFR • Pulled 2026-04-16