DFARS 216.403-1 — Fixed-price incentive (firm target) contracts
Regulatory text. Not legal advice.
(b)
(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 DFARS 216.403-1 for guidance on the use of fixed-price incentive (firm target) contracts.
Citation history: [76 FR 57679, Sept. 16, 2011]
Source: eCFR • Pulled 2026-04-16