[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: 48CFR16.206-3]

[Page 298]
 
            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.  16.206-3  Limitations.

    This contract type shall not be used unless--
    (a) The contract is for research and development and the estimated 
cost is $100,000 or less;
    (b) The contractor's accounting system is adequate for price 
redetermination;
    (c) There is reasonable assurance that the price redetermination 
will take place promptly at the specified time; and
    (d) The head of the contracting activity (or a higher-level 
official, if required by agency procedures) approves its use in writing.