FAR 16—Types of Contracts

Scope of part.

FAR 16.000 is the opening scope statement for FAR Part 16, which covers contract types and the policies, procedures, and guidance used to choose among them. It tells contracting personnel and contractors that this part is about the kinds of contracts that may be used in federal acquisitions and how to select a contract type that fits the circumstances of the procurement. In practice, this section matters because contract type affects risk allocation, pricing structure, administration burden, incentives, and the level of cost or performance uncertainty each party bears. Although the text is brief, it frames the entire part by signaling that the government must make a deliberate, acquisition-specific contract type decision rather than using a one-size-fits-all approach. It also alerts readers that the detailed rules in Part 16 are intended to guide both policy development and day-to-day source selection and contract formation decisions.

Definitions.

FAR 16.001 provides the definitions used in FAR Part 16, which governs types of contracts, contract pricing, and related administration concepts. This section specifically defines four terms: Award-Fee Board, established price, Fee-Determining Official (FDO), and rollover of unearned award fee. These definitions matter because they control how award-fee contracts are structured, how fee decisions are made, and how certain commercial pricing concepts are treated when determining contract price. In practice, the definitions help contracting officers, program officials, and contractors use the same terminology when drafting award-fee plans, evaluating performance, and deciding whether a price qualifies as an established price. The section is short, but it is foundational for understanding award-fee governance and pricing under Part 16.

Subpart 16.1

Subpart 16.2

Subpart 16.3

Subpart 16.4

Subpart 16.5

Subpart 16.6

Subpart 16.7