---
kind: "section"
citation: "48 C.F.R. § 16.207-3"
title: "48"
number: "16.207-3"
heading: "Limitations."
url: "https://uscodex.org/cfr/48/16.207-3"
---

# §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.

## Notes

### Amendments

[48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020]

### 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 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020]