[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR16.202-2]



[Page 305]

 

            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]