Fixed-price incentive (firm target) contracts.

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Title 48 CFR: Federal Acquisition Regulations System › Chapter 2: DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE › Part 216: TYPES OF CONTRACTS › Subpart 216.4: Subpart 216.4—Incentive Contracts › § 216.403-1: Fixed-price incentive (firm target) contracts.

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Text

(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]

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