What is FAR 52.216-12?

FAR 52.216-12 (Cost-Sharing Contract—No Fee.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the contract-types category.

When is FAR 52.216-12 required?

FAR 52.216-12 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 52.216-12 flow down to subcontractors?

Whether FAR 52.216-12 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

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52.216-12 — Cost-Sharing Contract—No Fee.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.216-12 — Cost-Sharing Contract—No Fee.. 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

52.216-12 Cost-Sharing Contract—No Fee. As prescribed in 16.307(f), insert the following clause in solicitations and contracts when a cost-sharing contract is contemplated. This clause may be modified by substituting $10,000 in lieu of $100,000 as the maximum reserve in paragraph (b) if the contract is with a nonprofit organization. Cost-Sharing Contract—No Fee (APR 1984) (a) The Government shall not pay to the Contractor a fee for performing this contract. (b) After paying 80 percent of the Government's share of the total estimated cost of performance shown in the Schedule, the Contracting Officer may withhold further payment of allowable cost until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government's interest. This reserve shall not exceed one percent of the Government's share of the total estimated cost shown in the Schedule or $100,000, whichever is less. (End of clause) Alternate I (APR 1984). In a contract for research and development with an educational institution, for which the contracting officer has determined that withholding of a portion of allowable cost is not required, delete paragraph (b) of the basic clause. [48 FR 42478, Sept. 19, 1983, as amended at 72 FR 27389, May 15, 2007]
Source: eCFR, 48 CFR 52.216-12 (https://www.ecfr.gov/current/title-48/section-52.216-12)

Compliance Checklist

Cost-Sharing Contract—No Fee (APR 1984) (a) The Government shall not pay to the Contractor a fee for performing this contract.
This reserve shall not exceed one percent of the Government's share of the total estimated cost shown in the Schedule or $100,000, whichever is less.
In a contract for research and development with an educational institution, for which the contracting officer has determined that withholding of a portion of allowable cost is not required, delete paragraph (b) of the basic clause.

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.