---
kind: "section"
citation: "48 C.F.R. § 16.102"
title: "48"
number: "16.102"
heading: "Policies."
url: "https://uscodex.org/cfr/48/16.102"
---

# §16.102. Policies.

- (a) Contracts resulting from sealed bidding shall be firm-fixed-price contracts or fixed-price contracts with economic price adjustment.
- (b) Contracts negotiated under [part 15](/cfr/48/part15.md) may be of any type or combination of types that will promote the Government's interest, except as restricted in this part (see 10 U.S.C. [3321(a)](/usc/10/3321.md?p=a) and [41](/usc/10/41.md) U.S.C. 3901). Contract types not described in this regulation shall not be used, except as a deviation under [subpart 1.4](/cfr/48/subpart1.4.md).
- (c) The cost-plus-a-percentage-of-cost system of contracting shall not be used (see 10 U.S.C. [3322(a)](/usc/10/3322.md?p=a) and [41](/usc/10/41.md) U.S.C. 3905(a)). Prime contracts (including letter contracts) other than firm-fixed-price contracts shall, by an appropriate clause, prohibit cost- plus-a-percentage-of-cost subcontracts (see clauses prescribed in [subpart 44.2](/cfr/48/subpart44.2.md) for cost-reimbursement contracts and subparts [16.2](/cfr/48/subpart16.2.md) and [16.4](/cfr/48/subpart16.4.md) for fixed-price contracts).
- (d) No contract may be awarded before the execution of any determination and findings (D&F's) required by this part. Minimum requirements for the content of D&F's required by this part are specified in 1.704.

## Notes

### Amendments

[48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1741, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 79 FR 24202, Apr. 29, 2014; 87 FR 73898, Dec. 1, 2022]

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42219, Sept. 19, 1983, unless otherwise noted.

### Amendments

[48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1741, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 79 FR 24202, Apr. 29, 2014; 87 FR 73898, Dec. 1, 2022]