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                            16.206-3 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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16.206-3 Limitations.16.206-3 Limitations.       This contract type shall not be used unless-                                       (a)                    						             The contract is for research and development and the estimated cost is the simplified acquisition threshold or less;                                          (b)                    						             The contractor’s accounting system is adequate for price redetermination;                                          (c)                    						             There is reasonable assurance that the price redetermination will take place promptly at the specified time; and                                          (d)                    						             The head of the contracting activity (or a higher-level official, if required by agency procedures) approves its use in writing.    **Parent topic:**  16.206 Fixed-ceiling-price contracts with retroactive price redetermination.
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