[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.