[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR16.202-2]

[Page 295]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 16_TYPES OF CONTRACTS--Table of Contents
 
                   Subpart 16.2_Fixed-Price Contracts
 
Sec.  16.202-2  Application.

    A firm-fixed-price contract is suitable for acquiring commercial 
items (see parts 2 and 12) or for acquiring other supplies or services 
on the basis of reasonably definite functional or detailed 
specifications (see part 11) when the contracting officer can establish 
fair and reasonable prices at the outset, such as when--
    (a) There is adequate price competition;
    (b) There are reasonable price comparisons with prior purchases of 
the same or similar supplies or services made on a competitive basis or 
supported by valid cost or pricing data;
    (c) Available cost or pricing information permits realistic 
estimates of the probable costs of performance; or
    (d) Performance uncertainties can be identified and reasonable 
estimates of their cost impact can be made, and the contractor is 
willing to accept a firm fixed price representing assumption of the 
risks involved.

[48 FR 42219, Sept. 19, 1983, as amended at 60 FR 48248, Sept. 18, 1995]