[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: 48CFR16.102]

[Page 294]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 16--TYPES OF CONTRACTS--Table of Contents
 
                 Subpart 16.1--Selecting Contract Types
 
Sec. 16.102  Policies.

    (a) Contracts resulting from sealed bidding shall be firm-fixed-
price contracts or fixed-price contracts with economic price adjustment.
    (b) Contracts negotiated under part 15 may be of any type or 
combination of types that will promote the Government's interest, except 
as restricted in this part (see 10 U.S.C. 2306(a) and 41 U.S.C. 254(a)). 
Contract types not described in this regulation shall not be used, 
except as a deviation under subpart 1.4.
    (c) The cost-plus-a-percentage-of-cost system of contracting shall 
not be used (see 10 U.S.C. 2306(a) and 41 U.S.C. 254(b)). Prime 
contracts (including letter contracts) other than firm-fixed-price 
contracts shall, by an appropriate clause, prohibit cost- plus-a-
percentage-of-cost subcontracts (see clauses prescribed in subpart 44.2 
for cost-reimbursement contracts and subparts 16.2 and 16.4 for fixed-
price contracts).
    (d) No contract may be awarded before the execution of any 
determination and findings (D&F's) required by this part. Minimum 
requirements for the content of D&F's required by this part are 
specified in 1.704.

[48 FR 42219, Sept. 19, 1983, as amended at 50 FR 1741, Jan. 11, 1985; 
50 FR 52429, Dec. 23, 1985]