Limitations.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Limitations. 16.207-3 Section 16.207-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 16.207–3 Limitations. This contract type may be used only when— (a) The work required cannot otherwise be clearly defined; (b) The required level of effort is identified and agreed upon in advance; (c) There is reasonable assurance that the intended result cannot be achieved by expending less than the stipulated effort; and (d) The contract price is the simplified acquisition threshold or less, unless approved by the chief of the contracting office. [48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020]