[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.102]

[Page 569]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
                       Subpart 31.1--Applicability
 
Sec. 31.102  Fixed-price contracts.

    The applicable subparts of part 31 shall be used in the pricing of 
fixed-price contracts, subcontracts, and modifications to contracts and 
subcontracts whenever (a) cost analysis is performed, or (b) a fixed-
price contract clause requires the determination or negotiation of 
costs. However, application of cost principles to fixed-price contracts 
and subcontracts shall not be construed as a requirement to negotiate 
agreements on individual elements of cost in arriving at agreement on 
the total price. The final price accepted by the parties reflects 
agreement only on the total price. Further, notwithstanding the 
mandatory use of cost principles, the objective will continue to be to 
negotiate prices that are fair and reasonable, cost and other factors 
considered.