§ 16.206-3 - Limitations.

16.206-3 Limitations.

Cross Reference

Link to an amendment published at 85 FR 40067, July 2, 2020.

This contract type shall not be used unless -

(a) The contract is for research and development and the estimated cost is $150,000 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.

[48 FR 42219, Sept. 19, 1983, as amended at 75 FR 53133, Aug. 30, 2010; 85 FR 40067, July 2, 2020]