StacksVerified U.S. regulatory reference

48 CFR §16.205-3

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
This contract type shall not be used unless—
  1. (a)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;
  2. (b)The contractor's accounting system is adequate for price redetermination;
  3. (c)The prospective pricing periods can be made to conform with operation of the contractor's accounting system; and
  4. (d)There is reasonable assurance that price redetermination actions will take place promptly at the specified times.