Electronic Code of Federal Regulations
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e-CFR data is current as of March 5, 2021 |
Title 48 → Chapter 1 → Subchapter C → Part 16 → Subpart 16.2 → §16.205-3 |
Title 48: Federal Acquisition Regulations System
PART 16—TYPES OF CONTRACTS
Subpart 16.2—Fixed-Price Contracts
16.205-3 Limitations.
This contract type shall not be used unless—
(a) Negotiations have established that (1) the conditions for use of a firm-fixed-price contract are not present (see 16.202-2), and (2) a fixed-price incentive contract would not be more appropriate;
(b) The contractor's accounting system is adequate for price redetermination;
(c) The prospective pricing periods can be made to conform with operation of the contractor's accounting system; and
(d) There is reasonable assurance that price redetermination actions will take place promptly at the specified times.