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Clauses · FAR · Payment and financing

FAR 52.216-8 Fixed Fee

Does the regulation require it to flow down?

No

No flow-down paragraph in the text (verified); the prime includes it in a CPFF sub to match the sub's fee flow and withhold to what it lives with itself on the prime contract

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-04 · edition JUN 2011 · base v0.9.3 Read the text ↗

What it makes you produce

One item for your checklist.

  1. Nothing to send now

    It does not hold the order. It decides what money moves later — what you can claim, what can be claimed from you, and what can be held back — and none of that changes after signature.

    • Nothing goes out now — under paragraph (b) the fixed fee is paid as the Schedule specifies, less a reserve of up to 15 percent of the total fixed fee or $100,000, whichever is less, and 75 percent of the withholds is released after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion

      FAR 52.216-8(b)

When it is used

Enters cost-plus-fixed-fee contracts (prescribed at 16.307(b), accompanying 52.216-7). At the sub level, it appears when the prime issues a CPFF subcontract and mirrors its own fee regime.

Read closely

The proposal that releases the withhold is the one FAR 52.216-7(d)(2)(i) asks for, so the two clauses are one cash-flow question rather than two. The remainder is released at closeout.

The 6 templates that name it, with the line
155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 167233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1164105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 23912Boeing GP4 — General Provisions, Cost Reimbursement Contract under U.S. Government Prime ContractBoeingline 196240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 1528273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 837

Source: acquisition.gov, FAR 52.216-8 and 16.307(b) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.