---
kind: "section"
citation: "48 C.F.R. § 216.403-1"
title: "48"
number: "216.403-1"
heading: "Fixed-price incentive (firm target) contracts."
url: "https://uscodex.org/cfr/48/216.403-1"
---

# §216.403-1. Fixed-price incentive (firm target) contracts.

- (b) **Application.**
  - (1) The contracting officer shall give particular consideration to the use of fixed-price incentive (firm target) contracts, especially for acquisitions moving from development to production.
  - (2) The contracting officer shall pay particular attention to share lines and ceiling prices for fixed-price incentive (firm target) contracts, with a 120 percent ceiling and a 50/50 share ratio as the point of departure for establishing the incentive arrangement.
  - (3) See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.

## Notes

### Amendments

[76 FR 57679, Sept. 16, 2011]

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36340, July 31, 1991, unless otherwise noted.

### Amendments

[76 FR 57679, Sept. 16, 2011]