[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: 48CFR32.501-3]

[Page 651]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 32--CONTRACT FINANCING--Table of Contents
 
             Subpart 32.5--Progress Payments Based on Costs
 
Sec. 32.501-3  Contract price.

    (a) For the purpose of making progress payments and determining the 
limitation on progress payments, the contract price shall be as follows:
    (1) Under firm-fixed-price contracts, the contract price is the 
current contract price plus any unpriced modifications for which funds 
have been obligated.
    (2) If the contract is redeterminable or subject to economic price 
adjustment, the contract price is the initial price until modified.
    (3) Under a fixed-price incentive contract, the contract price is 
the target price plus any unpriced modifications for which funds have 
been obligated. However, if the contractor's properly incurred costs 
exceed the target price, the contracting officer may provisionally 
increase the price up to the ceiling or maximum price.
    (4) Under a letter contract, the contract price is the maximum 
amount obligated by the contract as modified.
    (5) Under an unpriced order issued against a basic ordering 
agreement, the contract price is the maximum amount obligated by the 
order, as modified.
    (6) Any portion of the contract specifically providing for 
reimbursement of costs only shall be excluded from the contract price.
    (b) The contracting officer shall not make progress payments or 
increase the contract price beyond the funds obligated under the 
contract, as amended.