---
kind: "section"
citation: "48 C.F.R. § 16.603-3"
title: "48"
number: "16.603-3"
heading: "Limitations."
url: "https://uscodex.org/cfr/48/16.603-3"
---

# §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](/cfr/48/part6.md); 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.

## Notes

### Amendments

[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]

### 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 1742, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 51 FR 31426, Sept. 3, 1986]