{"data":{"id":"us/48-cfr-16.205-3","jurisdiction":"us","citation":"48 CFR 16.205-3","heading":"16.205-3 Limitations.","body":"This contract type shall not be used unless—\n(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;\n(b) The contractor's accounting system is adequate for price redetermination;\n(c) The prospective pricing periods can be made to conform with operation of the contractor's accounting system; and\n(d) There is reasonable assurance that price redetermination actions will take place promptly at the specified times.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 1—FEDERAL ACQUISITION REGULATION","SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES","PART 16—TYPES OF CONTRACTS","Subpart 16.2—Fixed-Price Contracts"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-48.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:29Z","sha256":"21e337d25d0ac9aff3d4ee2f0a18afc5eb62533f032d8f5ba5152267dc066e74","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-16.205-2","next":"us/48-cfr-16.205-4"},"notice":"GroundRules: Original legal text. Not legal advice."}