[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: 48CFR16.206-3]



[Page 309]

 

            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.