Federal Acquisition Regulation

Contracts with commercial organizations

FAR 31.103

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 Contracts with educational institutions (FAR 31.104) ), construction and architect-engineer contracts (see Construction and architect-engineer contracts (FAR 31.105) ), State and local governments (see Contracts with State, local, and federally recognized Indian tribal governments (FAR 31.107) ) and nonprofit organizations (see Contracts with nonprofit organizations (FAR 31.108) ) on the basis of cost. (a) The cost principles and procedures in subpart Contracts with Commercial Organizations (FAR 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 15.404-1 (c). (b) In addition, the contracting officer shall incorporate the cost principles and procedures in subpart Contracts with Commercial Organizations (FAR 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 Time-and-materials contracts (FAR 16.601) (c)(3)); (2) Negotiating indirect cost rates (see subpart Indirect Cost Rates (FAR 42.7) ); (3) Proposing, negotiating, or determining costs under terminated contracts (see Methods of settlement (FAR 49.103) and Cost principles (FAR 49.113) ); (4) Price revision of fixed-price incentive contracts (see Fixed-price incentive contracts (FAR 16.204) and Fixed-price incentive contracts (FAR 16.403) ); (5) Price redetermination of price redetermination contracts (see Fixed-price contracts with prospective price redetermination (FAR 16.205) and Fixed-ceiling-price contracts with retroactive price redetermination (FAR 16.206) ); and (6) Pricing changes and other contract modifications.

Record identifier

31.103