48 C.F.R. § 16.205.3 — Limitations.
Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Limitations. 16.205-3 Section 16.205-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 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.