StacksVerified U.S. regulatory reference

48 CFR §216.403-1

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
  1. (b)Application.
    1. (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. (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. (3)See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.