48 CFR 216.403-1
216.403-1 Fixed-price incentive (firm target) contracts.
United States · 48 CFR — Federal Acquisition Regulations System · Status: effective
Cite this
- Citation
- 48 CFR 216.403-1, 216.403-1 Fixed-price incentive (firm target) contracts, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/243192
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Full 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.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.