GroundRules
48 CFR 216.403-1: 216.403-1 Fixed-price incentive (firm target) contracts.
Where this section sits in the code
- Title 48—Federal Acquisition Regulations System
- CHAPTER 2—DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE
- SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES
- PART 216—TYPES OF CONTRACTS
- Subpart 216.4—Incentive Contracts
(b) Application.
(1) The contracting officer shall give particular consideration to the use of fixed-price incentive (firm target) contracts, especially for acquisitions moving from development to production.
(2) The contracting officer shall pay particular attention to share lines and ceiling prices for fixed-price incentive (firm target) contracts, with a 120 percent ceiling and a 50/50 share ratio as the point of departure for establishing the incentive arrangement.
(3) See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.
Collected 2026-08-27T02:26:29Z. Source file · JSON