Limitations.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Limitations. 16.206-3 Section 16.206-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 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 the simplified acquisition threshold 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. [48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020]