What is FAR 52.215-16?

FAR 52.215-16 (Facilities Capital Cost of Money.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the contracting-methods category.

When is FAR 52.215-16 required?

FAR 52.215-16 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.

Does FAR 52.215-16 flow down to subcontractors?

Whether FAR 52.215-16 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

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52.215-16 — Facilities Capital Cost of Money.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.215-16 — Facilities Capital Cost of Money.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.215-16 Facilities Capital Cost of Money. As prescribed in 15.408(h), insert the following provision: Facilities Capital Cost of Money (JUN 2003) (a) Facilities capital cost of money will be an allowable cost under the contemplated contract, if the criteria for allowability in FAR 31.205-10(b) are met. One of the allowability criteria requires the prospective Contractor to propose facilities capital cost of money in its offer. (b) If the prospective Contractor does not propose this cost, the resulting contract will include the clause Waiver of Facilities Capital Cost of Money. (End of provision) [52 FR 35669, Sept. 22, 1987. Redesignated and amended at 62 FR 51263, Sept. 30, 1997; 68 FR 28092, May 22, 2003]
Source: eCFR, 48 CFR 52.215-16 (https://www.ecfr.gov/current/title-48/section-52.215-16)

Compliance Checklist

One of the allowability criteria requires the prospective Contractor to propose facilities capital cost of money in its offer.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.