[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: 48CFR16.205-3]



[Page 308]

 

            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. 16.205-3  Limitations.



    This contract type shall not be used unless--

    (a) Negotiations have established that (1) the conditions for use of 

a firm-fixed-price contract are not present (see 16.202-2), and (2) a 

fixed-price incentive contract would not be more appropriate;

    (b) The contractor's accounting system is adequate for price 

redetermination;

    (c) The prospective pricing periods can be made to conform with 

operation of the contractor's accounting system; and

    (d) There is reasonable assurance that price redetermination actions 

will take place promptly at the specified times.