[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: 48CFR16.203-3]

[Page 296]
 
            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.  16.203-3  Limitations.

    A fixed-price contract with economic price adjustment shall not be 
used unless the contracting officer determines that it is necessary 
either to protect the contractor and the Government against significant 
fluctuations in labor or material costs or to provide for contract price 
adjustment in the event of changes in the contractor's established 
prices.