{"data":{"id":"us/48-cfr-216.403-1","jurisdiction":"us","citation":"48 CFR 216.403-1","heading":"216.403-1 Fixed-price incentive (firm target) contracts.","body":"(b) Application.\n(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.\n(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.\n(3) See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.","path":["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"],"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":"c19a35fa5f30876439d76dea0bc433f1255e6abdc44725c8b2402632aa00e9bc","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-216.403","next":"us/48-cfr-216.403-2"},"notice":"GroundRules: Original legal text. Not legal advice."}