[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: 48CFR16.203-3]



[Page 306]

 

            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.