[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.