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Code of Federal Regulations (Last Updated: May 6, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 2 - Defense Acquisition Regulations System, Department of Defense |
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SubChapter C - Contracting Methods and Contract Types |
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Part 216 - Types of Contracts |
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Subpart 216.4 - Incentive Contracts |
§ 216.403-1 - Fixed-price incentive (firm target) contracts.
Latest version.
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216.403-1 Fixed-price incentive (firm target) contracts.
(b) Application.
(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.
(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.
(3) See PGI 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.
[76 FR 57679, Sept. 16, 2011]