Limitations.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Limitations. 16.603-3 Section 16.603-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Time-and-Materials, Labor-Hour, and Letter Contracts 16.603–3 Limitations. A letter contract may be used only after the head of the contracting activity or a designee determines in writing that no other contract is suitable. Letter contracts shall not— (a) Commit the Government to a definitive contract in excess of the funds available at the time the letter contract is executed; (b) Be entered into without competition when competition is required by part 6; or (c) Be amended to satisfy a new requirement unless that requirement is inseparable from the existing letter contract. Any such amendment is subject to the same requirements and limitations as a new letter contract. [48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1742, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 51 FR 31426, Sept. 3, 1986]