[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: 48CFR31.102]



[Page 594]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

                       Subpart 31.1_Applicability

 

Sec. 31.102  Fixed-price contracts.



    The applicable subparts of part 31 shall be used in the pricing of 

fixed-price contracts, subcontracts, and modifications to contracts and 

subcontracts whenever (a) cost analysis is performed, or (b) a fixed-

price contract clause requires the determination or negotiation of 

costs. However, application of cost principles to fixed-price contracts 

and subcontracts shall not be construed as a requirement to negotiate 

agreements on individual elements of cost in arriving at agreement on 

the total price. The final price accepted by the parties reflects 

agreement only on the total price. Further, notwithstanding the 

mandatory use of cost principles, the objective will continue to be to 

negotiate prices that are fair and reasonable, cost and other factors 

considered.