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                            16.205-3 Limitations.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart16.016.116.216.316.416.516.616.7
Section16.20116.20216.20316.20416.20516.20616.207
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16.205-3 Limitations.16.205-3 Limitations.       This contract type shall not be used unless-                                       (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;                                                                             (b)                    						            The contractor’s accounting system is adequate for price redetermination;                                          (c)                    						            The prospective pricing periods can be made to conform with operation of the contractor’s accounting system; and                                          (d)                    						            There is reasonable assurance that price redetermination actions will take place promptly at the specified times.    **Parent topic:**  16.205 Fixed-price contracts with prospective price redetermination.
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