§16.205-3. Limitations.
48 C.F.R. § 16.205-3
This contract type shall not be used unless—
Negotiations have established that (1) the conditions for use of a firm-fixed-price contract are not present (see 16.202-2), and (2) a fixed-price incentive contract would not be more appropriate;
The contractor's accounting system is adequate for price redetermination;
The prospective pricing periods can be made to conform with operation of the contractor's accounting system; and
There is reasonable assurance that price redetermination actions will take place promptly at the specified times.
Notes, amendments, and revision history
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.