---
kind: "section"
citation: "48 C.F.R. § 16.202-2"
title: "48"
number: "16.202-2"
heading: "Application."
url: "https://uscodex.org/cfr/48/16.202-2"
---

# §16.202-2. Application.


A firm-fixed-price contract is suitable for acquiring commercial products or commercial services (see parts [2](/cfr/48/part2.md) and [12](/cfr/48/part12.md)) or for acquiring other supplies or services on the basis of reasonably definite functional or detailed specifications (see [part 11](/cfr/48/part11.md)) when the contracting officer can establish fair and reasonable prices at the outset, such as when—

- (a) There is adequate price competition;
- (b) There are reasonable price comparisons with prior purchases of the same or similar supplies or services made on a competitive basis or supported by valid certified cost or pricing data;
- (c) Available cost or pricing information permits realistic estimates of the probable costs of performance; or
- (d) Performance uncertainties can be identified and reasonable estimates of their cost impact can be made, and the contractor is willing to accept a firm fixed price representing assumption of the risks involved.

## Notes

### Amendments

[48 FR 42219, Sept. 19, 1983, as amended at 60 FR 48248, Sept. 18, 1995; 75 FR 53148, Aug. 30, 2010; 86 FR 61027, Nov. 4, 2021]

### 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 60 FR 48248, Sept. 18, 1995; 75 FR 53148, Aug. 30, 2010; 86 FR 61027, Nov. 4, 2021]