FAR 31.103 — Contracts with commercial organizations
Regulatory text. Not legal advice.
This category includes all contracts and contract modifications for supplies, services, or experimental, developmental, or research work negotiated with organizations other than educational institutions (see FAR 31.104), construction and architect-engineer contracts (see FAR 31.105), State and local governments (see FAR 31.107) and nonprofit organizations (see FAR 31.108) on the basis of cost.
(a)
(a) The cost principles and procedures in FAR Subpart 31.2 and agency supplements shall be used in pricing negotiated supply, service, experimental, developmental, and research contracts and contract modifications with commercial organizations whenever cost analysis is performed as required by [FAR 15.404-1].
(b)
(b) In addition, the contracting officer shall incorporate the cost principles and procedures in FAR Subpart 31.2 and agency supplements by reference in contracts with commercial organizations as the basis for—
(1) Determining reimbursable costs under (i) cost-reimbursement contracts and cost-reimbursement subcontracts under these contracts performed by commercial organizations and (ii) the cost-reimbursement portion of time-and-materials contracts except when material is priced on a basis other than at cost (see [FAR 16.601](3));
(2) Negotiating indirect cost rates (see FAR Subpart 42.7);
(3) Proposing, negotiating, or determining costs under terminated contracts (see FAR 49.103 and FAR 49.113);
(4) Price revision of fixed-price incentive contracts (see FAR 16.204 and FAR 16.403);
(5) Price redetermination of price redetermination contracts (see FAR 16.205 and FAR 16.206); and
(6) Pricing changes and other contract modifications.
Citation history: [48 FR 42301, Sept. 19, 1983, as amended at 62 FR 51271, Sept. 30, 1997; 72 FR 6882, Feb. 13, 2007]
Source: eCFR • Pulled 2026-04-16