[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: 48CFR16.205-3]

[Page 299]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 16--TYPES OF CONTRACTS--Table of Contents
 
                   Subpart 16.2--Fixed-Price Contracts
 
Sec. 16.205-3  Limitations.

    This contract type shall not be used unless--
    (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;
    (b) The contractor's accounting system is adequate for price 
redetermination;
    (c) The prospective pricing periods can be made to conform with 
operation of the contractor's accounting system; and
    (d) There is reasonable assurance that price redetermination actions 
will take place promptly at the specified times.